Are Institutions Heavily Invested In Terna - Rete Elettrica Nazionale Società per Azioni's (BIT:TRN) Shares?

By
Simply Wall St
Published
December 31, 2020

If you want to know who really controls Terna - Rete Elettrica Nazionale Società per Azioni (BIT:TRN), 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. Companies that used to be publicly owned tend to have lower insider ownership.

Terna - Rete Elettrica Nazionale Società per Azioni has a market capitalization of €13b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Terna - Rete Elettrica Nazionale Società per Azioni.

See our latest analysis for Terna - Rete Elettrica Nazionale Società per Azioni

BIT:TRN Ownership Breakdown December 31st 2020

What Does The Institutional Ownership Tell Us About Terna - Rete Elettrica Nazionale Società per Azioni?

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 Terna - Rete Elettrica Nazionale Società per Azioni does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Terna - Rete Elettrica Nazionale Società per Azioni, (below). Of course, keep in mind that there are other factors to consider, too.

BIT:TRN Earnings and Revenue Growth December 31st 2020

Terna - Rete Elettrica Nazionale Società per Azioni is not owned by hedge funds. Our data shows that Cassa depositi e prestiti S.p.A. is the largest shareholder with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.1% and 2.2% of the stock.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 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 Terna - Rete Elettrica Nazionale Società per Azioni

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. 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. 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 46% ownership, the general public have some degree of sway over Terna - Rete Elettrica Nazionale Società per Azioni. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Case in point: We've spotted 2 warning signs for Terna - Rete Elettrica Nazionale Società per Azioni you should be aware of, and 1 of them is potentially serious.

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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