Could The Flexdeal Simfe S.A. (ELI:FLEXD) Ownership Structure Tell Us Something Useful?

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If you want to know who really controls Flexdeal Simfe S.A. (ELI:FLEXD), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'

Flexdeal Simfe is a smaller company with a market capitalization of €16m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are not on the share registry. Let's delve deeper into each type of owner, to discover more about FLEXD.

View our latest analysis for Flexdeal Simfe

ENXTLS:FLEXD Ownership Summary, September 16th 2019
ENXTLS:FLEXD Ownership Summary, September 16th 2019

What Does The Lack Of Institutional Ownership Tell Us About Flexdeal Simfe?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Flexdeal Simfe's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

ENXTLS:FLEXD Income Statement, September 16th 2019
ENXTLS:FLEXD Income Statement, September 16th 2019

Flexdeal Simfe is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Flexdeal Simfe

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems insiders own a significant proportion of Flexdeal Simfe S.A.. It has a market capitalization of just €16m, and insiders have €2.8m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.