Dassault Systèmes SE (EPA:DSY) stock price fell 7.8% last week; private companies would not be happy

Every investor in Dassault Systèmes SE (EPA:DSY) should know the most powerful shareholder groups. We can see that private companies hold the lion’s share of the company with 41% ownership. In other words, the group faces the maximum upside potential (or downside risk).

As market capitalization fell to 48 billion euros last week, private companies would have suffered the highest losses than any other group of corporate shareholders.

Let’s take a closer look at each type of Dassault Systèmes owner, starting with the table below.

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ENXTPA: DSY Ownership Breakdown September 20, 2022

What does institutional ownership tell us about Dassault Systèmes?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Dassault Systèmes already has establishments registered in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Dassault Systèmes’ earnings history below. Of course, the future is what really matters.

ENXTPA: DSY Earnings and Revenue Growth September 20, 2022

Hedge funds do not have many shares in Dassault Systèmes. Groupe Industriel Marcel Dassault is currently the main shareholder, with 41% of the outstanding shares. For context, the second largest shareholder owns approximately 6.0% of the outstanding shares, followed by 2.3% ownership by the third largest shareholder. In addition, CEO Bernard Charles owns 1.7% of the company’s shares.

Looking further, we found that 51% of the shares are held by the top 4 shareholders. In other words, these shareholders have a say in the decisions of the company.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.

Dassault Systèmes Insider Ownership

The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Shareholders would likely be interested to learn that insiders hold shares of Dassault Systèmes SE. It is a very large company and the members of the board of directors collectively own 3.8 billion euros in shares (at current prices). sometimes we are interested in whether they bought or sold.

General public property

With a 30% stake, the general public, consisting mainly of individual investors, has some influence over Dassault Systèmes. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

Our data indicates that private companies hold 41% of the shares of society. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors.

Many find it useful to take an in-depth look at a company’s performance in the past. You can access this detailed graph past profits, revenue and cash flow.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Karen J. Nelson