Stock Analysis

Private equity firms account for 48% of Koninklijke Vopak N.V.'s (AMS:VPK) ownership, while institutions account for 28%

ENXTAM:VPK
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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. With 48% stake, private equity firms possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Institutions, on the other hand, account for 28% of the company's stockholders. 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 Koninklijke Vopak.

Check out our latest analysis for Koninklijke Vopak

ownership-breakdown
ENXTAM:VPK Ownership Breakdown December 19th 2021

What Does The Institutional Ownership Tell Us About Koninklijke Vopak?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Koninklijke Vopak. 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. 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.

earnings-and-revenue-growth
ENXTAM:VPK Earnings and Revenue Growth December 19th 2021

We note that hedge funds don't have a meaningful investment in Koninklijke Vopak. HAL Investments B.V. is currently the company's largest shareholder with 48% of shares outstanding. The second and third largest shareholders are Sprucegrove Investment Management Ltd and Maple-Brown Abbott, 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

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. 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.

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.

We can report that insiders do own shares in Koninklijke Vopak N.V.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around €119m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in Koninklijke Vopak. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 48%, private equity firms could influence the Koninklijke Vopak board. 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:

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 3 warning signs we've spotted with Koninklijke Vopak .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.