Retail investors among Intralot S.A. Integrated Lottery Systems and Services' (ATH:INLOT) largest shareholders, saw gain in holdings value after stock jumped 7.5% last week

Key Insights

• The considerable ownership by retail investors in Intralot Integrated Lottery Systems and Services indicates that they collectively have a greater say in management and business strategy
• The top 3 shareholders own 55% of the company
• 23% of Intralot Integrated Lottery Systems and Services is held by insiders

A look at the shareholders of Intralot S.A. Integrated Lottery Systems and Services (ATH:INLOT) can tell us which group is most powerful. With 39% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, retail investors were the biggest beneficiaries of last week’s 7.5% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Intralot Integrated Lottery Systems and Services.

View our latest analysis for Intralot Integrated Lottery Systems and Services

What Does The Institutional Ownership Tell Us About Intralot Integrated Lottery Systems and Services?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Less than 5% of Intralot Integrated Lottery Systems and Services is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

Our data indicates that hedge funds own 27% of Intralot Integrated Lottery Systems and Services. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our data shows that Standard General L.P. is the largest shareholder with 27% of shares outstanding. With 21% and 7.2% of the shares outstanding respectively, Socratis Kokkalis and Intracom Holdings S.A. are the second and third largest shareholders. Socratis Kokkalis, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 55% 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Intralot Integrated Lottery Systems and Services

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Intralot S.A. Integrated Lottery Systems and Services. Insiders have a €163m stake in this €710m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 39% 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.

Public Company Ownership

Public companies currently own 7.2% of Intralot Integrated Lottery Systems and Services stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Intralot Integrated Lottery Systems and Services (at least 2 which are potentially serious) , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com