In This Article:
Key Insights
-
The considerable ownership by private companies in ForFarmers indicates that they collectively have a greater say in management and business strategy
-
57% of the business is held by the top 2 shareholders
To get a sense of who is truly in control of ForFarmers N.V. (AMS:FFARM), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 48% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, individual investors make up 34% of the company’s shareholders.
Let's delve deeper into each type of owner of ForFarmers, beginning with the chart below.
See our latest analysis for ForFarmers
What Does The Institutional Ownership Tell Us About ForFarmers?
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 companies to have some institutions on the register, especially if they are growing.
Less than 5% of ForFarmers is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
ForFarmers is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Coöperatie FromFarmers U.A. with 48% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.1% and 5.4% of the stock.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 57% stake.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of ForFarmers
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.