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Could The Befimmo SA (EBR:BEFB) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Befimmo SA (EBR:BEFB) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

Befimmo has a market capitalization of €1.5b, so we would expect some institutional investors to have noticed the stock. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about BEFB.

See our latest analysis for Befimmo

ENXTBR:BEFB Ownership Summary, September 25th 2019
ENXTBR:BEFB Ownership Summary, September 25th 2019

What Does The Institutional Ownership Tell Us About Befimmo?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Befimmo does have institutional investors; and they hold 28% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Befimmo's earnings history, below. Of course, the future is what really matters.

ENXTBR:BEFB Income Statement, September 25th 2019
ENXTBR:BEFB Income Statement, September 25th 2019

We note that hedge funds don't have a meaningful investment in Befimmo. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Befimmo

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our data suggests that insiders own under 1% of Befimmo SA in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own €81k worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.