PATRIZIA SE (ETR:PAT) stock most popular amongst private companies who own 56%, while individual investors hold 23%

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

Thu, Jun 6, 2024, 5:39 AM 4 min read

To get a sense of who is truly in control of PATRIZIA SE (ETR:PAT), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 23% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about PATRIZIA.

View our latest analysis for PATRIZIA

ownership-breakdown — XTRA:PAT Ownership Breakdown June 6th 2024

What Does The Institutional Ownership Tell Us About PATRIZIA?

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.

As you can see, institutional investors have a fair amount of stake in PATRIZIA. 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. 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 PATRIZIA's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — XTRA:PAT Earnings and Revenue Growth June 6th 2024

We note that hedge funds don't have a meaningful investment in PATRIZIA. The company's largest shareholder is First Capital Partner GmbH, with ownership of 56%. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Allianz Asset Management GmbH and Union Asset Management Holding AG, with an equal amount of shares to their name at 5.4%.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of PATRIZIA

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.

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 note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 23% 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.

Private Company Ownership

Our data indicates that Private Companies hold 56%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for PATRIZIA that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.