While institutions invested in TREVI - Finanziaria Industriale S.p.A. (BIT:TFIN) benefited from last week's 21% gain, retail investors stood to gain the most

Key Insights

• Significant control over TREVI - Finanziaria Industriale by retail investors implies that the general public has more power to influence management and governance-related decisions
• The top 5 shareholders own 51% of the company
• Institutions own 26% of TREVI - Finanziaria Industriale

Every investor in TREVI - Finanziaria Industriale S.p.A. (BIT:TFIN) should be aware of the most powerful shareholder groups. With 30% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 21% increase in the stock price last week, retail investors profited the most, but institutions who own 26% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about TREVI - Finanziaria Industriale.

See our latest analysis for TREVI - Finanziaria Industriale

What Does The Institutional Ownership Tell Us About TREVI - Finanziaria Industriale?

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.

TREVI - Finanziaria Industriale already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 TREVI - Finanziaria Industriale, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in TREVI - Finanziaria Industriale. CDPE Investimenti SpA is currently the largest shareholder, with 21% of shares outstanding. With 12% and 8.2% of the shares outstanding respectively, Polaris Capital Management, LLC and Kerdos Spv S.R.L. 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.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of TREVI - Finanziaria Industriale

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.

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 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, who are usually individual investors, hold a 30% stake in TREVI - Finanziaria Industriale. 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 Equity Ownership

With a stake of 21%, private equity firms could influence the TREVI - Finanziaria Industriale board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

We can see that Private Companies own 21%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand TREVI - Finanziaria Industriale better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for TREVI - Finanziaria Industriale you should be aware of, and 2 of them are a bit concerning.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.