Stock Analysis

Institutions along with private equity firms who hold considerable shares inKoninklijke Vopak N.V. (AMS:VPK) come under pressure; lose 3.2% of holdings value

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ENXTAM:VPK
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A look at the shareholders of Koninklijke Vopak N.V. (AMS:VPK) can tell us which group is most powerful. With 48% stake, private equity firms possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 25% came under pressure after market cap dropped to €2.6b last week,private equity firms took the most losses.

Let's delve deeper into each type of owner of Koninklijke Vopak, beginning with the chart below.

See our latest analysis for Koninklijke Vopak

ownership-breakdown
ENXTAM:VPK Ownership Breakdown September 17th 2022

What Does The Institutional Ownership Tell Us About Koninklijke Vopak?

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.

As you can see, institutional investors have a fair amount of stake in Koninklijke Vopak. 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 Koninklijke Vopak, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
ENXTAM:VPK Earnings and Revenue Growth September 17th 2022

Koninklijke Vopak is not owned by hedge funds. The company's largest shareholder is HAL Investments B.V., with ownership of 48%. The second and third largest shareholders are Maple-Brown Abbott and Sprucegrove Investment Management Ltd, with an equal amount of shares to their name at 3.0%.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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 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 Koninklijke Vopak

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.

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.

Our most recent data indicates that insiders own some shares in Koninklijke Vopak N.V.. This is a big company, so it is good to see this level of alignment. Insiders own €82m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Koninklijke Vopak. 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.

Private Equity Ownership

With an ownership of 48%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Koninklijke Vopak (at least 1 which is significant) , and understanding them should be part of your investment process.

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.

Valuation is complex, but we're helping make it simple.

Find out whether Koninklijke Vopak is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About ENXTAM:VPK

Koninklijke Vopak

Koninklijke Vopak N.V., an independent tank storage company, stores and handles liquid chemicals, gases and LNG, oil products, biofuels, and vegetable oils worldwide.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth3
Past Performance0
Financial Health1
Dividends4

Read more about these checks in the individual report sections or in our analysis model.

Average dividend payer and fair value.