Koninklijke Vopak N.V.'s (AMS:VPK) market cap surged €173m last week, private equity firms who have a lot riding on the company were rewarded

Key Insights

• Koninklijke Vopak's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
• 54% of the company is held by a single shareholder (HAL Investments B.V.)
• 21% of Koninklijke Vopak is held by Institutions

To get a sense of who is truly in control of Koninklijke Vopak N.V. (AMS:VPK), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private equity firms with 54% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private equity firms were the biggest beneficiaries of last week’s 3.6% gain.

In the chart below, we zoom in on the different ownership groups of Koninklijke Vopak.

See our latest analysis for Koninklijke Vopak

What Does The Institutional Ownership Tell Us About Koninklijke Vopak?

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.

We can see that Koninklijke Vopak does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Koninklijke Vopak's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Koninklijke Vopak. HAL Investments B.V. is currently the largest shareholder, with 54% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 3.4% and 2.3% of the stock.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Koninklijke Vopak

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that Koninklijke Vopak N.V. insiders own under 1% of the company. Keep in mind that it's a big company, and the insiders own €4.3m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 25% 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 54%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Koninklijke Vopak better, we need to consider many other factors. For instance, we've identified 1 warning sign for Koninklijke Vopak that you should be aware of.

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.