Private companies invested in Valamar Riviera d.d. (ZGSE:RIVP) copped the brunt of last week's Kn353m market cap decline

By
Simply Wall St
Published
February 25, 2022
ZGSE:RIVP
Source: Shutterstock

A look at the shareholders of Valamar Riviera d.d. (ZGSE:RIVP) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies as a group endured the highest losses last week after market cap fell by Kn353m.

Let's delve deeper into each type of owner of Valamar Riviera d.d, beginning with the chart below.

See our latest analysis for Valamar Riviera d.d

ownership-breakdown
ZGSE:RIVP Ownership Breakdown February 25th 2022

What Does The Institutional Ownership Tell Us About Valamar Riviera d.d?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Valamar Riviera d.d. 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 Valamar Riviera d.d's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ZGSE:RIVP Earnings and Revenue Growth February 25th 2022

We note that hedge funds don't have a meaningful investment in Valamar Riviera d.d. Our data shows that Goldscheider Keramik Gesellschaft M.B.H. is the largest shareholder with 21% of shares outstanding. With 21% and 5.4% of the shares outstanding respectively, Wurmböck Beteiligungs GmbH and Satis d.o.o. are the second and third largest shareholders.

On looking further, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Valamar Riviera d.d

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 data cannot confirm that board members are 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

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Valamar Riviera d.d. 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

We can see that Private Companies own 49%, of the shares on issue. 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:

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 1 warning sign for Valamar Riviera d.d 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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