The considerable ownership by private equity firms in Koninklijke Vopak indicates that they collectively have a greater say in management and business strategy
51% of the business is held by the top 2 shareholders
If you want to know who really controls Koninklijke Vopak N.V. (AMS:VPK), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 48% to be precise, is private equity firms. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutions, on the other hand, account for 25% of the company's stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Koninklijke Vopak.
What Does The Institutional Ownership Tell Us About Koninklijke Vopak?
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.
We can see that Koninklijke Vopak does have institutional investors; and they hold a good portion of the company's 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Koninklijke Vopak's historic earnings and revenue below, but keep in mind there's always more to the story.
ENXTAM:VPK Earnings and Revenue Growth July 2nd 2023
We note that hedge funds don't have a meaningful investment in Koninklijke Vopak. Our data shows that HAL Investments B.V. is the largest shareholder with 48% of shares outstanding. The second and third largest shareholders are Sprucegrove Investment Management Ltd and Maple-Brown Abbott, with an equal amount of shares to their name at 3.0%.
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 51% stake.
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 Koninklijke Vopak
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
We can report that insiders do own shares in Koninklijke Vopak N.V.. The insiders have a meaningful stake worth €129m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.
General Public Ownership
With a 24% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Koninklijke Vopak. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
With a stake of 48%, private equity firms could influence the Koninklijke Vopak board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Koninklijke Vopak better, we need to consider many other factors. For instance, we've identified 2 warning signs for Koninklijke Vopak that you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
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.
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