Shareholders Should Check The Ownership Structure Of AFC Ajax NV (AMS:AJAX)

A look at the shareholders of AFC Ajax NV (AMS:AJAX) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

AFC Ajax is not a large company by global standards. It has a market capitalization of €233m, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about AJAX.

See our latest analysis for AFC Ajax

ENXTAM:AJAX Ownership Summary October 3rd 18
ENXTAM:AJAX Ownership Summary October 3rd 18

What Does The Institutional Ownership Tell Us About AFC Ajax?

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.

AFC Ajax already has institutions on the share registry. Indeed, they own 11% of 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. 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 AFC Ajax’s earnings history, below. Of course, the future is what really matters.

ENXTAM:AJAX Income Statement Export October 3rd 18
ENXTAM:AJAX Income Statement Export October 3rd 18

We note that hedge funds don’t have a meaningful investment in AFC Ajax. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of AFC Ajax

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.

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 data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public — mostly retail investors — own 89% of AFC Ajax . This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.