Danieli & C. Officine Meccaniche S.p.A.'s (BIT:DAN) biggest owners are individual investors who got richer after stock soared 3.7% last week

By
Simply Wall St
Published
April 14, 2022
BIT:DAN
Source: Shutterstock

Every investor in Danieli & C. Officine Meccaniche S.p.A. (BIT:DAN) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 34% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, individual investors collectively scored the highest last week as the company hit €1.3b market cap following a 3.7% gain in the stock.

In the chart below, we zoom in on the different ownership groups of Danieli & C. Officine Meccaniche.

See our latest analysis for Danieli & C. Officine Meccaniche

ownership-breakdown
BIT:DAN Ownership Breakdown April 14th 2022

What Does The Institutional Ownership Tell Us About Danieli & C. Officine Meccaniche?

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.

As you can see, institutional investors have a fair amount of stake in Danieli & C. Officine Meccaniche. 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 Danieli & C. Officine Meccaniche's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
BIT:DAN Earnings and Revenue Growth April 14th 2022

Danieli & C. Officine Meccaniche is not owned by hedge funds. Our data shows that Sind International S.R.L. is the largest shareholder with 34% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 4.2% and 3.4%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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. 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 Danieli & C. Officine Meccaniche

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. 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

We can see that Private Companies own 34%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Danieli & C. Officine Meccaniche better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Danieli & C. Officine Meccaniche .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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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