Stock Analysis

ID Logistics Group SA's (EPA:IDL) 6.2% gain last week benefited both private companies who own 34% as well as insiders

ENXTPA:IDL
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Key Insights

  • The considerable ownership by private companies in ID Logistics Group indicates that they collectively have a greater say in management and business strategy
  • The top 2 shareholders own 53% of the company
  • 22% of ID Logistics Group is held by insiders

To get a sense of who is truly in control of ID Logistics Group SA (EPA:IDL), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 34% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 6.2% increase in the stock price last week, private companies profited the most, but insiders who own 22% stock also stood to gain from the increase.

In the chart below, we zoom in on the different ownership groups of ID Logistics Group.

View our latest analysis for ID Logistics Group

ownership-breakdown
ENXTPA:IDL Ownership Breakdown July 17th 2024

What Does The Institutional Ownership Tell Us About ID Logistics Group?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that ID Logistics Group does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at ID Logistics Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTPA:IDL Earnings and Revenue Growth July 17th 2024

ID Logistics Group is not owned by hedge funds. Our data shows that Immod is the largest shareholder with 32% of shares outstanding. With 21% and 3.1% of the shares outstanding respectively, Eric Hemar and ID Logistics Group SA, Esop are the second and third largest shareholders. Eric Hemar, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of ID Logistics Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

It seems insiders own a significant proportion of ID Logistics Group SA. It is very interesting to see that insiders have a meaningful €558m stake in this €2.5b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over ID Logistics Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 34%, of the ID Logistics Group 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:

It's always worth thinking about the different groups who own shares in a company. But to understand ID Logistics Group better, we need to consider many other factors. Be aware that ID Logistics Group is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.