BRD - Groupe Société Générale S.A.'s (BVB:BRD) largest shareholders are public companies with 60% ownership, institutions own 21%

Key Insights

• Significant control over BRD - Groupe Société Générale by public companies implies that the general public has more power to influence management and governance-related decisions
• 60% of the company is held by a single shareholder (Société Générale Société anonyme)
• 21% of BRD - Groupe Société Générale is held by Institutions

A look at the shareholders of BRD - Groupe Société Générale S.A. (BVB:BRD) can tell us which group is most powerful. The group holding the most number of shares in the company, around 60% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And institutions on the other hand have a 21% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

Let's take a closer look to see what the different types of shareholders can tell us about BRD - Groupe Société Générale.

Check out our latest analysis for BRD - Groupe Société Générale

What Does The Institutional Ownership Tell Us About BRD - Groupe Société Générale?

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.

As you can see, institutional investors have a fair amount of stake in BRD - Groupe Société Générale. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 BRD - Groupe Société Générale's earnings history below. Of course, the future is what really matters.

BRD - Groupe Société Générale is not owned by hedge funds. Our data shows that Société Générale Société anonyme is the largest shareholder with 60% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 9.7% and 4.0% of the shares outstanding respectively, Allianz-Tiriac Pensii Private, Asset Management Arm and Infinity Capital Investments S.A. are the second and third largest shareholders.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of BRD - Groupe Société Générale

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 data suggests that insiders own under 1% of BRD - Groupe Société Générale S.A. in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own RON1.0m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 19% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 60% of BRD - Groupe Société Générale. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand BRD - Groupe Société Générale better, we need to consider many other factors. For instance, we've identified 1 warning sign for BRD - Groupe Société Générale 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com