Individual investors account for 32% of Eurobank Ergasias Services and Holdings S.A.'s (ATH:EUROB) ownership, while institutions account for 31%
Key Insights
- Eurobank Ergasias Services and Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- A total of 9 investors have a majority stake in the company with 51% ownership
- Insiders have been selling lately
If you want to know who really controls Eurobank Ergasias Services and Holdings S.A. (ATH:EUROB), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 32% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And institutions on the other hand have a 31% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's take a closer look to see what the different types of shareholders can tell us about Eurobank Ergasias Services and Holdings.
View our latest analysis for Eurobank Ergasias Services and Holdings
What Does The Institutional Ownership Tell Us About Eurobank Ergasias Services and Holdings?
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.
We can see that Eurobank Ergasias Services and Holdings 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 Eurobank Ergasias Services and Holdings' earnings history below. Of course, the future is what really matters.
Our data indicates that hedge funds own 5.1% of Eurobank Ergasias Services and Holdings. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Fairfax Financial Holdings Limited is currently the largest shareholder, with 29% of shares outstanding. The second and third largest shareholders are Capital Research and Management Company and Helikon Investments Limited, with an equal amount of shares to their name at 5.1%.
We did some more digging and found that 9 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Eurobank Ergasias Services and Holdings
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.
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 data suggests that insiders own under 1% of Eurobank Ergasias Services and Holdings S.A. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own €9.5m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. 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
We can see that Private Companies own 3.4%, of the shares on issue. 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.
Public Company Ownership
We can see that public companies hold 29% of the Eurobank Ergasias Services and Holdings shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Be aware that Eurobank Ergasias Services and Holdings is showing 1 warning sign in our investment analysis , you should know about...
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
About ATSE:EUROB
Eurobank Ergasias Services and Holdings
Provides retail banking, corporate and private banking, asset management, treasury, capital market, and other services primarily in Greece, rest of Europe, and internationally.
Good value with adequate balance sheet.
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