The considerable ownership by private equity firms in Sif Holding indicates that they collectively have a greater say in management and business strategy
Egeria Capital Management B.V. owns 56% of the company
A look at the shareholders of Sif Holding N.V. (AMS:SIFG) can tell us which group is most powerful. We can see that private equity firms own the lion's share in the company with 56% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 18% of the company’s shareholders.
Let's delve deeper into each type of owner of Sif Holding, beginning with the chart below.
ENXTAM:SIFG Ownership Breakdown December 10th 2024
What Does The Institutional Ownership Tell Us About Sif Holding?
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 Sif Holding 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 Sif Holding's historic earnings and revenue below, but keep in mind there's always more to the story.
ENXTAM:SIFG Earnings and Revenue Growth December 10th 2024
We note that hedge funds don't have a meaningful investment in Sif Holding. The company's largest shareholder is Egeria Capital Management B.V., with ownership of 56%. This implies that they have majority interest control of the future of the company. Equinor ASA is the second largest shareholder owning 14% of common stock, and Moneta Asset Management holds about 5.0% of the company stock.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Sif Holding
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our information suggests that Sif Holding N.V. insiders own under 1% of the company. It has a market capitalization of just €365m, and the board has only €144k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sif Holding. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With an ownership of 56%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Public Company Ownership
We can see that public companies hold 14% of the Sif Holding shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Sif Holding .
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.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
