BRD - Groupe Société Générale S.A.'s (BVB:BRD) market cap touched RON13b last week, benefiting both public companies who own 60% as well as institutions

Key Insights

• The considerable ownership by public companies in BRD - Groupe Société Générale indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Société Générale Société anonyme with a 60% stake
• 21% of BRD - Groupe Société Générale is held by Institutions

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To get a sense of who is truly in control of BRD - Groupe Société Générale S.A. (BVB:BRD), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Public companies gained the most after market cap touched RON13b last week, while institutions who own 21% also benefitted.

In the chart below, we zoom in on the different ownership groups of BRD - Groupe Société Générale.

See our latest analysis for BRD - Groupe Société Générale

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that BRD - Groupe Société Générale does have institutional investors; and they hold a good portion of the company's stock. 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 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. The company's largest shareholder is Société Générale Société anonyme, with ownership of 60%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Allianz-Tiriac Pensii Private, Asset Management Arm is the second largest shareholder owning 9.7% of common stock, and Infinity Capital Investments S.A. holds about 4.0% of the company stock.

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 BRD - Groupe Société Générale

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.

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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in BRD - Groupe Société Générale. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 60% of BRD - Groupe Société Générale stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for BRD - Groupe Société Générale you should know about.

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.