Stock Analysis

Mediobanca Banca di Credito Finanziario S.p.A. (BIT:MB) stock most popular amongst individual investors who own 55%, while private companies hold 24%

BIT:MB
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Key Insights

To get a sense of who is truly in control of Mediobanca Banca di Credito Finanziario S.p.A. (BIT:MB), it is important to understand the ownership structure of the business. With 55% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Private companies, on the other hand, account for 24% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Mediobanca Banca di Credito Finanziario.

View our latest analysis for Mediobanca Banca di Credito Finanziario

ownership-breakdown
BIT:MB Ownership Breakdown September 27th 2024

What Does The Institutional Ownership Tell Us About Mediobanca Banca di Credito Finanziario?

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.

As you can see, institutional investors have a fair amount of stake in Mediobanca Banca di Credito Finanziario. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Mediobanca Banca di Credito Finanziario's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
BIT:MB Earnings and Revenue Growth September 27th 2024

Hedge funds don't have many shares in Mediobanca Banca di Credito Finanziario. Delfin S.à R.L. is currently the largest shareholder, with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.3% and 2.6% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Mediobanca Banca di Credito Finanziario

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.

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

The general public -- including retail investors -- own 55% of Mediobanca Banca di Credito Finanziario. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 24%, 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - Mediobanca Banca di Credito Finanziario has 1 warning sign we think 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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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.