Titan Cement International S.A. (ATH:TITC) surges 5.1%; private companies who own 32% shares profited along with institutions

Key Insights

• Significant control over Titan Cement International by private companies implies that the general public has more power to influence management and governance-related decisions
• A total of 3 investors have a majority stake in the company with 52% ownership
• Insiders own 22% of Titan Cement International

To get a sense of who is truly in control of Titan Cement International S.A. (ATH:TITC), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 5.1% increase in the stock price last week, private companies profited the most, but institutions who own 24% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Titan Cement International, beginning with the chart below.

View our latest analysis for Titan Cement International

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.

Titan Cement International already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Titan Cement International, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Titan Cement International. E.D.Y.V.E.M. Public Company Ltd is currently the largest shareholder, with 29% of shares outstanding. Leonidas Canellopoulos is the second largest shareholder owning 12% of common stock, and FMR LLC holds about 11% of the company stock. Leonidas Canellopoulos, who is the second-largest shareholder, also happens to hold the title of Senior Key Executive.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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. 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.

Our most recent data indicates that insiders own a reasonable proportion of Titan Cement International S.A.. It has a market capitalization of just €2.5b, and insiders have €566m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Titan Cement International. 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

Our data indicates that Private Companies hold 32%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Titan Cement International better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Titan Cement International you should know about.

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.