Do Insiders Own Lots Of Shares In F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A. (BIT:FILA)?

If you want to know who really controls F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A. (BIT:FILA), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

F.I.L.A. - Fabbrica Italiana Lapis ed Affini is a smaller company with a market capitalization of €459m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about F.I.L.A. - Fabbrica Italiana Lapis ed Affini.

Check out our latest analysis for F.I.L.A. - Fabbrica Italiana Lapis ed Affini

What Does The Institutional Ownership Tell Us About F.I.L.A. - Fabbrica Italiana Lapis ed Affini?

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.

F.I.L.A. - Fabbrica Italiana Lapis ed Affini 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 F.I.L.A. - Fabbrica Italiana Lapis ed Affini, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in F.I.L.A. - Fabbrica Italiana Lapis ed Affini. Looking at our data, we can see that the largest shareholder is the CEO Massimo Candela with 53% of shares outstanding. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. VEI Capital is the second largest shareholder owning 5.0% of common stock, and Norges Bank Investment Management holds about 3.7% of the company stock.

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 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 F.I.L.A. - Fabbrica Italiana Lapis ed Affini

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 insiders own more than half of F.I.L.A. - Fabbrica Italiana Lapis ed Affini S.p.A.. This gives them effective control of the company. That means they own €241m worth of shares in the €459m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 20% stake in F.I.L.A. - Fabbrica Italiana Lapis ed Affini. 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.

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 - F.I.L.A. - Fabbrica Italiana Lapis ed Affini has 4 warning signs (and 1 which shouldn't be ignored) we think you should know about.

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. 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.
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