Public companies account for 60% of BRD - Groupe Société Générale S.A.'s (BVB:BRD) ownership, while institutions account for 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
• Société Générale Société anonyme owns 60% of the company
• 21% of BRD - Groupe Société Générale is held by Institutions

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If you want to know who really controls BRD - Groupe Société Générale S.A. (BVB:BRD), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 60% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, institutions make up 21% of the company’s shareholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.

In the chart below, we zoom in on the different ownership groups of 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?

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.

BRD - Groupe Société Générale already has institutions on the share registry. Indeed, they own a respectable stake in 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see BRD - Groupe Société Générale's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in BRD - Groupe Société Générale. Our data shows that Société Générale Société anonyme is the largest shareholder with 60% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 5.6% of the shares outstanding, followed by an ownership of 4.3% by the third-largest shareholder.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We note our data does not show any board members 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, who are usually individual investors, hold a 19% stake in BRD - Groupe Société Générale. 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

Public companies currently own 60% of BRD - Groupe Société Générale stock. 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. Take risks for example - BRD - Groupe Société Générale has 1 warning sign we think 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.