Great week for Prodea Real Estate Investment Company Société Anonyme (ATH:PRODEA) institutional investors after losing 7.7% 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
• 78% of the company is held by a single shareholder (Invel Real Estate (Netherlands) II BV)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

To get a sense of who is truly in control of Prodea Real Estate Investment Company Société Anonyme (ATH:PRODEA), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 79% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Last week's €153m market cap gain would probably be appreciated by institutional investors, especially after a year of 7.7% losses.

Let's take a closer look to see what the different types of shareholders can tell us about Prodea Real Estate Investment Company Société Anonyme.

Check out 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?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Prodea Real Estate Investment Company Société Anonyme does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Prodea Real Estate Investment Company Société Anonyme's earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Prodea Real Estate Investment Company Société Anonyme. Invel Real Estate (Netherlands) II BV is currently the company's largest shareholder with 78% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 2.1% by the third-largest shareholder.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Prodea Real Estate Investment Company Société Anonyme

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.

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.

Our information suggests that Prodea Real Estate Investment Company Société Anonyme insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own €1.2m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

It appears to us that public companies own 5.0% of Prodea Real Estate Investment Company Société Anonyme. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Be aware that Prodea Real Estate Investment Company Société Anonyme is showing 5 warning signs in our investment analysis , and 3 of those are potentially serious...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.