What type of shareholders own the most Royal Unibrew A / S (CPH: RBREW) shares?
If you want to know who really controls Royal Unibrew A / S (CPH: RBREW), then you will need to look at the makeup of their share register. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
With a market cap of 39 billion crowns, Royal Unibrew is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Our analysis of company ownership, below, shows that institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Royal Unibrew.
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What does institutional ownership tell us about Royal Unibrew?
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 Royal Unibrew has institutional investors; and they own a large portion of the company’s stock. 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. 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 Royal Unibrew’s historical income and earnings below, but keep in mind that there is always more to tell.
Royal Unibrew is not owned by hedge funds. Chr. Augustinus Fabrikker Aktieselskab is currently the largest shareholder of the company with 15% of the shares outstanding. In comparison, the second and third shareholders hold around 10.0% and 3.0% of the capital.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.
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. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Royal Unibrew Insider Ownership
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.
Our information suggests that Royal Unibrew A / S insiders own less than 1% of the company. But they can have an indirect interest through a business structure that we have not chosen. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, the insiders own shares worth 77 million kroner. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
With a 44% stake, the general public has some influence over Royal Unibrew. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Owned by a private company
It appears that private companies own 15% of the shares of Royal Unibrew. 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 an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
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 2 warning signs with Royal Unibrew and understanding them should be part of your investment process.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its 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 material. Simply Wall St has no position in any of the stocks mentioned.
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