Institutional investors control 31% of Reinet Investments S.C.A. (BDL:REINI) and were rewarded last week after stock increased 3.5%

Key Insights

• Institutions' substantial holdings in Reinet Investments S.C.A implies that they have significant influence over the company's share price
• The top 4 shareholders own 52% of the company
• Insiders own 27% of Reinet Investments S.C.A

If you want to know who really controls Reinet Investments S.C.A. (BDL:REINI), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 31% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And things are looking up for institutional investors after the company gained €145m in market cap last week. One-year return to shareholders is currently 21% and last week’s gain was the icing on the cake.

Let's delve deeper into each type of owner of Reinet Investments S.C.A, beginning with the chart below.

See our latest analysis for Reinet Investments S.C.A

What Does The Institutional Ownership Tell Us About Reinet Investments S.C.A?

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.

Reinet Investments S.C.A 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 Reinet Investments S.C.A, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Reinet Investments S.C.A. Johann Rupert is currently the largest shareholder, with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 15% and 5.4%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Reinet Investments S.C.A

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Reinet Investments S.C.A.. It is very interesting to see that insiders have a meaningful €1.2b stake in this €4.3b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in Reinet Investments S.C.A. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 5 warning signs for Reinet Investments S.C.A (1 is a bit unpleasant!) that you should be aware of before investing here.

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.