Here's What Titan Cement International S.A.'s (ATH:TITC) Shareholder Ownership Structure Looks Like

By
Simply Wall St
Published
February 25, 2022
ATSE:TITC
Source: Shutterstock

If you want to know who really controls Titan Cement International S.A. (ATH:TITC), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Titan Cement International isn't enormous, but it's not particularly small either. It has a market capitalization of €970m, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Titan Cement International.

View our latest analysis for Titan Cement International

ownership-breakdown
ATSE:TITC Ownership Breakdown February 25th 2022

What Does The Institutional Ownership Tell Us About Titan Cement International?

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 Titan Cement International does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Titan Cement International's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ATSE:TITC Earnings and Revenue Growth February 25th 2022

We note that hedge funds don't have a meaningful investment in Titan Cement International. Looking at our data, we can see that the largest shareholder is E.D.Y.V.E.M. Public Company Ltd with 16% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 11% by the third-largest shareholder. Leonidas Canellopoulos, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive. In addition, we found that Dimitrios Papalexopoulos, the CEO has 4.2% of the shares allocated to their name.

Our research also brought to light the fact that roughly 53% 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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Titan Cement International

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Titan Cement International S.A.. It has a market capitalization of just €970m, and insiders have €231m worth of shares in their own names. That's quite significant. 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 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Titan Cement International. 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.

Private Company Ownership

Our data indicates that Private Companies hold 16%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 4 warning signs for Titan Cement International that you should be aware of.

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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