To get an idea of who really controls Fugro NV (AMS:FUR), it is important to understand the ownership structure of the company. We can see that individual investors hold the lion’s share of the company with 54% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
Individual investors gained the most after market capitalization hit 1.3 billion euros last week, while institutions that own 44% also benefited.
Let’s take a closer look at what different types of shareholders can tell us about Fugro.
See our latest review for Fugro
What does institutional ownership tell us about Fugro?
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.
Fugro already has institutions on 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. 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 Fugro’s historical revenue and earnings below, but keep in mind there’s always more to the story.
Hedge funds don’t have a lot of shares in Fugro. The company’s largest shareholder is NN Investment Partners Holdings NV, with a 17% stake. Meanwhile, the second and third largest shareholders hold 5.3% and 3.6% of the outstanding shares respectively.
A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.
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 are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Fugro Insider Property
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.
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.
Shareholders would probably be interested to learn that insiders hold shares of Fugro NV. Insiders have a significant stake worth €24 million. Most would see this as a real positive. Most would say this shows the alignment of interests between shareholders and the board. Still, it might be worth checking to see if these insiders have sold.
General public property
The general public, who are usually individual investors, hold a substantial 54% stake in Fugro, suggesting that it is quite a popular stock. This size of ownership gives mainstream investors a certain collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed corporate acquisitions.
It is always useful to think about the different groups that own shares in a company. But to better understand Fugro, we need to consider many other factors. To this end, you should be aware of the 1 warning sign we spotted with Fugro.
At the end of the day the future is the most important. You can access this free analyst forecast report for the company.
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.
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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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