What is the ownership structure of Eurazeo SE (EPA: RF)?
The large Eurazeo SE (EPA: RF) shareholder groups have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
With a market capitalization of 6.2 billion euros, Eurazeo is rather large. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. In the graph below, we can see that the institutions hold shares in the company. Let’s dig deeper into each type of owner, to find out more about Eurazeo.
See our latest analysis for Eurazeo
What does institutional ownership tell us about Eurazeo?
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.
Eurazeo already has establishments registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. It is therefore interesting to consult the history of Eurazeo’s results below. Of course, the future is what really matters.
We note that the hedge funds do not have a significant investment in Eurazeo. Our data shows that JCDecaux Holding SAS is the largest shareholder with 18% of the shares in circulation. With 6.7% and 5.9% of the outstanding shares respectively, Tikehau Capital and Estate of Eliane David Weill are the second and third shareholders.
A closer look at our ownership figures suggests that the top 11 shareholders have a combined 52% ownership, implying that no 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 achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider ownership of Eurazeo
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company is accountable 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.
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 note that insiders hold Eurazeo SE shares. Insiders have a significant stake worth 607 million euros. Most would see this as a real benefit. It’s good to see this level of investment from the insiders. You can check here if these insiders have bought recently.
General public property
The general public, with a 32% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Private equity companies hold 6.7% of Eurazeo’s capital. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
Owned by a private company
Our data indicates that private companies own 35% of the company’s shares. 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.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider, for example, the ever-present specter of investment risk. We have identified 3 warning signs with Eurazeo (at least 2 that cannot be ignored), and understanding them should be part of your investment process.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
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 the mentioned stocks.
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