A look at the shareholders of Impresa – Sociedade Gestora de Participações Sociais, S.A. (ELI:IPR) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.
Impresa – Sociedade Gestora de Participações Sociais is not a large company by global standards. It has a market capitalization of €36m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let’s take a closer look to see what the different types of shareholder can tell us about Impresa – Sociedade Gestora de Participações Sociais.
What Does The Institutional Ownership Tell Us About Impresa – Sociedade Gestora de Participações Sociais?
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 own 11% of Impresa – Sociedade Gestora de Participações Sociais. 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 Impresa – Sociedade Gestora de Participações Sociais’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Impresa – Sociedade Gestora de Participações Sociais. Looking at our data, we can see that the largest shareholder is Balseger, SGPS, S.A. with 50% of shares outstanding. This implies that they have majority interest control of the future of the company. Next, we have Madre – Sociedade Gestora de Participacoes Sociais, S.A. and BPI Gestão de Activos – Gestão de Fundos de Investimento Mobiliários, S.A. as the second and third largest shareholders, holding 4.5% and 3.7%, of the shares outstanding, respectively.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. 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 Impresa – Sociedade Gestora de Participações Sociais
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. 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.
I can report that insiders do own shares in Impresa – Sociedade Gestora de Participações Sociais, S.A.. In their own names, insiders own €545k worth of stock in the €36m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public holds a 30% stake in IPR. 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 Company Ownership
We can see that Private Companies own 57%, of the shares on issue. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
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 Impresa – Sociedade Gestora de Participações Sociais (at least 1 which is a bit concerning) , and understanding them should be part of your investment process.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.