Private companies account for 53% of Recordati Industria Chimica e Farmaceutica S.p.A.'s (BIT:REC) ownership, while institutions account for 26%

Key Insights

• The considerable ownership by private companies in Recordati Industria Chimica e Farmaceutica indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Rossini Investments S.à R.L. with a 53% stake
• Institutional ownership in Recordati Industria Chimica e Farmaceutica is 26%

If you want to know who really controls Recordati Industria Chimica e Farmaceutica S.p.A. (BIT:REC), then you'll have to look at the makeup of its share registry. With 53% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, institutions make up 26% of the company’s shareholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

Let's take a closer look to see what the different types of shareholders can tell us about Recordati Industria Chimica e Farmaceutica.

View our latest analysis for Recordati Industria Chimica e Farmaceutica

What Does The Institutional Ownership Tell Us About Recordati Industria Chimica e Farmaceutica?

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 Recordati Industria Chimica e Farmaceutica. 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. 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 Recordati Industria Chimica e Farmaceutica, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Recordati Industria Chimica e Farmaceutica. Rossini Investments S.à R.L. is currently the company's largest shareholder with 53% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 5.0% and 3.5% of the shares outstanding respectively, Mawer Investment Management Ltd. and FMR LLC are the second and third largest shareholders.

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 Recordati Industria Chimica e Farmaceutica

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Recordati Industria Chimica e Farmaceutica. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 53%, of the company's shares. 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:

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. To that end, you should be aware of the 2 warning signs we've spotted with Recordati Industria Chimica e Farmaceutica .

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. 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.