The recent 10% gain must have brightened Top Key Executive Grigoris Sarantis' week, Gr. Sarantis S.A.'s (ATH:SAR) most bullish insider

Key Insights

• Significant insider control over Gr. Sarantis implies vested interests in company growth
• 51% of the business is held by the top 5 shareholders
• 32% of Gr. Sarantis is held by Institutions

To get a sense of who is truly in control of Gr. Sarantis S.A. (ATH:SAR), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 36% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders scored the highest last week as the company hit €658m market cap following a 10% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Gr. Sarantis.

View our latest analysis for Gr. Sarantis

What Does The Institutional Ownership Tell Us About Gr. Sarantis?

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.

As you can see, institutional investors have a fair amount of stake in Gr. Sarantis. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Gr. Sarantis' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Gr. Sarantis. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Gr. Sarantis' case, its Top Key Executive, Grigoris Sarantis, is the largest shareholder, holding 19% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 10.0% of the stock. In addition, we found that Kyriakos Sarantis, the CEO has 5.9% of the shares allocated to their name.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Gr. Sarantis

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.

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.

Our information suggests that insiders maintain a significant holding in Gr. Sarantis S.A.. Insiders have a €237m stake in this €658m business. We 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, who are usually individual investors, hold a 32% stake in Gr. Sarantis. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Gr. Sarantis better, we need to consider many other factors. Take risks for example - Gr. Sarantis has 1 warning sign we think you should be aware of.

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.