private companies that hold 42% as well as institutions invested in CIE Automotive, SA (BME:CIE) saw the value of their holdings increase last week

A look at the shareholders of CIE Automotive, SA (BME:CIE) can tell us which group is the most powerful. With 42% of the capital, private companies hold the maximum shares in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

Private companies gained the most after market capitalization hit 2.6 billion euros last week, while institutions that own 21% also benefited.

Let’s take a closer look at what different types of shareholders can tell us about CIE Automotive.

See our latest analysis for CIE Automotive

BME: CIE Ownership Breakdown May 15, 2022

What does institutional ownership tell us about CIE Automotive?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors hold a significant share of CIE Automotive. 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 CIE Automotive’s historical revenue and earnings below, but keep in mind there’s always more to tell.

earnings-and-revenue-growth
BME: CIE Earnings and Revenue Growth May 15, 2022

Hedge funds don’t have a lot of shares in CIE Automotive. Corporación Financiera Alba, SA is currently the main shareholder, with 13% of the outstanding shares. With 11% and 9.9% of the outstanding shares respectively, Elidoza Promoción de Empresas, SL and Risteel Corporation, BV are the second and third largest shareholders. Additionally, we found that Jesus Maria Herrera Barandiaran, the CEO, owns 1.4% of the shares attributed to his name.

We also observed that the top 6 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

CIE Automotive Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders hold shares in CIE Automotive, SA. Insiders have a significant stake worth €37 million. Most would see this as a real positive. If you want to explore the issue of insider alignment, you can click here to see if insiders have been buying or selling.

General public property

The general public, including retail investors, owns 15% of the company’s capital and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Private equity ownership

With a 13% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. This might appeal to some, because private equity is sometimes an activist who holds management accountable. But other times, the private equity sells off, after taking the company public.

Private Company Ownership

It seems that private companies hold 42% of the shares of CIE Automotive. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Ownership of a public company

It appears to us that public companies hold 7.8% of CIE Automotive. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Example: we have identified 2 warning signs for CIE Automotive you should be aware.

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.

Comments are closed.