Great week for Prodea Real Estate Investment Company Société Anonyme (ATH:PRODEA) institutional investors after losing 1.6% over the previous year

Key Insights

• Significantly high institutional ownership implies Prodea Real Estate Investment Company Société Anonyme's stock price is sensitive to their trading actions
• Invel Real Estate (Netherlands) II BV owns 78% of the company
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Prodea Real Estate Investment Company Société Anonyme (ATH:PRODEA) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 88% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Last week's €115m market cap gain would probably be appreciated by institutional investors, especially after a year of 1.6% losses.

Let's delve deeper into each type of owner of Prodea Real Estate Investment Company Société Anonyme, beginning with the chart below.

See our latest analysis for Prodea Real Estate Investment Company Société Anonyme

What Does The Institutional Ownership Tell Us About Prodea Real Estate Investment Company Société Anonyme?

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.

Prodea Real Estate Investment Company Société Anonyme already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Prodea Real Estate Investment Company Société Anonyme, (below). Of course, keep in mind that there are other factors to consider, too.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Prodea Real Estate Investment Company Société Anonyme. The company's largest shareholder is Invel Real Estate (Netherlands) II BV, with ownership of 78%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 6.8% and 2.9% of the shares outstanding respectively, Invel Real Estate and Castlelake, L.P. are the second and third largest shareholders.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Prodea Real Estate Investment Company Société Anonyme

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public-- including retail investors -- own 10% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Prodea Real Estate Investment Company Société Anonyme better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with Prodea Real Estate Investment Company Société Anonyme (including 2 which shouldn't be ignored) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.