Is Grenobloise d'Electronique et d'Automatismes Société Anonyme's (EPA:GEA) Shareholder Ownership Skewed Towards Insiders?

If you want to know who really controls Grenobloise d'Electronique et d'Automatismes Société Anonyme (EPA:GEA), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Grenobloise d'Electronique et d'Automatismes Société Anonyme is not a large company by global standards. It has a market capitalization of €122m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are not really that prevalent on the share registry. Let's delve deeper into each type of owner, to discover more about Grenobloise d'Electronique et d'Automatismes Société Anonyme.

See our latest analysis for Grenobloise d'Electronique et d'Automatismes Société Anonyme

What Does The Institutional Ownership Tell Us About Grenobloise d'Electronique et d'Automatismes Société Anonyme?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Institutions have a very small stake in Grenobloise d'Electronique et d'Automatismes Société Anonyme. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

Grenobloise d'Electronique et d'Automatismes Société Anonyme is not owned by hedge funds. Serge Zaslavoglou is currently the largest shareholder, with 35% of shares outstanding. With 26% and 11% of the shares outstanding respectively, Eximium SAS and Warwyck Investment Holdings Ltd are the second and third largest shareholders. Furthermore, CEO Grigori Zaslavoglou is the owner of 2.3% of the company's shares.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 61% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Grenobloise d'Electronique et d'Automatismes Société Anonyme

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders maintain a significant holding in Grenobloise d'Electronique et d'Automatismes Société Anonyme. It has a market capitalization of just €122m, and insiders have €48m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 22% stake in Grenobloise d'Electronique et d'Automatismes Société Anonyme. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Equity Ownership

Private equity firms hold a 26% stake in Grenobloise d'Electronique et d'Automatismes Société Anonyme. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 11%, of the Grenobloise d'Electronique et d'Automatismes Société Anonyme stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 5 warning signs for Grenobloise d'Electronique et d'Automatismes Société Anonyme you should be aware of, and 2 of them are significant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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