The share price of Immobel SA (EBR:IMMO) fell by 8.3% last week; private companies would not be happy

To get an idea of ​​who actually controls Immobel SA (EBR: IMMO), it is important to understand the ownership structure of the company. With 59% of the capital, private companies hold the maximum shares in the company. In other words, the group faces the maximum upside potential (or downside risk).

As a result, private companies as a group suffered the highest losses last week after the market capitalization fell by 58 million euros.

In the graphic below, we zoom in on the different property groups of Immobel.

Discover our latest analysis for Immobel

ENXTBR: IMMO Ownership Breakdown May 10, 2022

What does institutional ownership tell us about Immobel?

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

Immobel already has establishments registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Immobel’s historical revenue and earnings below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth
ENXTBR: IMMO profit and revenue growth May 10, 2022

Hedge funds do not have many shares in Immobel. Looking at our data, we can see that the major shareholder is A3 Management Bvba with 30% of the outstanding shares. A³ Capital NV is the second largest shareholder with 30% of the ordinary shares and Janus Henderson Group plc owns around 1.9% of the company’s shares.

After digging a little deeper, we found that the 2 major shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence company decisions.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There is some analyst coverage of the stock, but it could still become better known over time.

Insider property of Immobel

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.

Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

We note that our data does not show any board members personally owning shares. Not all jurisdictions have the same rules regarding insider ownership disclosure, and we may be missing something here. So you can click here to learn more about the CEO.

General public property

The general public, generally individual investors, hold 34% of Immobel’s capital. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

It seems that Private Companies hold 59% of Immobel’s capital. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Immobel, we need to consider many other factors. For example, we found 4 warning signs for Immobel (1 is potentially serious!) which you should be aware of before investing here.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

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 in which 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.

Karen J. Nelson