How much Coffee Day Enterprises Limited (NSE: COFFEEDAY) do institutions own?
A look at the shareholders of Coffee Day Enterprises Limited (NSE: COFFEEDAY) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
Coffee Day Enterprises is a smaller company with a market cap of 7.8 billion yen, so it may still go under the radar of many institutional investors. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. Let’s take a closer look at what different types of shareholders can tell us about Coffee Day Enterprises.
Check out our latest review for Coffee Day Enterprises
What does institutional ownership tell us about Coffee Day businesses?
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 businesses to have some institutions listed, especially if they are growing.
We can see that Coffee Day Enterprises has institutional investors; and they own a good portion of the company’s shares. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see Coffee Day Enterprises’ historical revenue and revenue below, but keep in mind that there is always more to tell.
We note that hedge funds do not have a significant investment in Coffee Day Enterprises. Looking at our data we can see that the largest shareholder is Estate Of VG Siddhartha with 11% of the shares outstanding. With respectively 11% and 10% of the shares outstanding, Nls Mauritius Llc and Marina III (Singapore) Pte. Ltd. are the second and third largest shareholders.
We dug a little deeper and found that 8 of the major shareholders make up about 52% of the ledger, implying that with the larger shareholders there are a few smaller shareholders, thus balancing each other’s interests somewhat.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. As far as I know, there is no analyst coverage of the company, so it probably goes under the radar.
Insider Ownership of Coffee Day Companies
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company reports to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Insider ownership is positive when it indicates that executives think like the real 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 can see that the insiders own shares in Coffee Day Enterprises Limited. As individuals, insiders collectively own 303 million yen worth of the company 7.8 billion yen. It at least shows some alignment, but I generally like to see larger insider holdings. You can click here to see if these insiders have bought or sold.
General public property
The general public has a 27% stake in Coffee Day Enterprises. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Owned by a private company
It appears that private companies own 41% of the shares of Coffee Day Enterprises. It may be worth pursuing the question 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 business.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Coffee Day Enterprises, there are many other factors that we need to consider. Be aware that Coffee Day Enterprises shows 3 warning signs in our investment analysis , and 2 of them are potentially serious …
Sure this might not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.