What You Need To Know About Fine Foods & Pharmaceuticals N.T.M. S.p.A.'s (BIT:FF) Investor Composition

A look at the shareholders of Fine Foods & Pharmaceuticals N.T.M. S.p.A. (BIT:FF) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of €194m, Fine Foods & Pharmaceuticals N.T.M is a small cap stock, so it might not be well known by 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 Fine Foods & Pharmaceuticals N.T.M.

Check out our latest analysis for Fine Foods & Pharmaceuticals N.T.M

What Does The Institutional Ownership Tell Us About Fine Foods & Pharmaceuticals N.T.M?

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.

We can see that Fine Foods & Pharmaceuticals N.T.M does have institutional investors; and they hold a good portion of the company's stock. 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 Fine Foods & Pharmaceuticals N.T.M, (below). Of course, keep in mind that there are other factors to consider, too.

Fine Foods & Pharmaceuticals N.T.M is not owned by hedge funds. Marco Francesco Eigenmann is currently the company's largest shareholder with 65% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Incarcassa is the second largest shareholder owning 5.6% of common stock, and Anima SGR S.p.A. holds about 2.4% 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Fine Foods & Pharmaceuticals N.T.M

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 information suggests that insiders own more than half of Fine Foods & Pharmaceuticals N.T.M. S.p.A.. This gives them effective control of the company. That means they own €126m worth of shares in the €194m 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

With a 20% ownership, the general public have some degree of sway over Fine Foods & Pharmaceuticals N.T.M. 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

Our data indicates that Private Companies hold 5.6%, of the company's shares. 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 Fine Foods & Pharmaceuticals N.T.M better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Fine Foods & Pharmaceuticals N.T.M you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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