With 61% institutional ownership, BE Semiconductor Industries N.V. (AMS:BESI) is a favorite amongst the big guns

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editorial-team@simplywallst.com (Simply Wall St)

Thu, Feb 20, 2025, 2:29 AM 4 min read

Given the large stake in the stock by institutions, BE Semiconductor Industries' stock price might be vulnerable to their trading decisions
50% of the business is held by the top 19 shareholders
Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in BE Semiconductor Industries N.V. (AMS:BESI) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 61% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of BE Semiconductor Industries.

See our latest analysis for BE Semiconductor Industries

ownership-breakdown — ENXTAM:BESI Ownership Breakdown February 20th 2025

What Does The Institutional Ownership Tell Us About BE Semiconductor Industries?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

BE Semiconductor Industries already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of BE Semiconductor Industries, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — ENXTAM:BESI Earnings and Revenue Growth February 20th 2025

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in BE Semiconductor Industries. Our data shows that BlackRock, Inc. is the largest shareholder with 11% of shares outstanding. FMR LLC is the second largest shareholder owning 6.1% of common stock, and T. Rowe Price Group, Inc. holds about 5.7% of the company stock. In addition, we found that Richard Blickman, the CEO has 1.7% of the shares allocated to their name.

After doing some more digging, we found that the top 19 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of BE Semiconductor Industries

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can report that insiders do own shares in BE Semiconductor Industries N.V.. The insiders have a meaningful stake worth €157m. we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for BE Semiconductor Industries you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.