Institutions benefited from a €1.8 billion rise in the market capitalization of Safran SA (EPA: SAF) last week, but individual investors benefited the most.

the main ideas

  • The great control of Safran by the general public means that this group is likely to have significant influence over management and decisions related to governance.
  • The 25 largest shareholders own 49% of the company
  • Owns 44% of Safran

Every investor in Safran SA (Environmental Protection Agency: SAF) You must be aware of the strongest groups of shareholders. With a 45% stake, individual investors own the maximum number of shares in the company. In other words, the group will gain more (or lose more) from its investment in the company.

And while retail investors were the group that benefited the most from last week’s market capitalization gain of €1.8 billion, institutions also had a 44% stake in those profits.

Let’s dive into each type of Safran owner, starting with the chart below.

Check out our latest analysis on Safran

property collapse
ENXTPA: SAF Property Details January 15, 2023

What does corporate ownership tell us about Safran?

Institutional investors usually compare their returns to the returns of a commonly followed index. So they generally consider buying larger companies included in the relevant benchmark.

We can see that Safran has institutional investors. They own a large share of the company’s shares. This means that the analysts working for those institutions have looked at the stock and liked it. But like everyone else, they can be wrong. If many institutions change their view of the stock at the same time, you can see the stock price drop rapidly. So it’s worth looking at Safran’s earnings history below. Of course, the future is what really matters.

Profits and revenue growth
ENXTPA: SAF Earnings and Revenue Growth January 15, 2023

Safran is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is France with 11% of shares outstanding. With 7.3% and 7.0% of shares outstanding respectively, Capital Research and Management and Natixis Investment Managers International are the second and third largest shareholders.

Examining our ownership data, we found that the 25 major shareholders collectively own less than 50% of the share book, meaning that no single individual has a majority interest.

While studying a company’s corporate ownership can add value to your research, it’s also a good practice to look for analyst recommendations to get a deeper understanding of the stock’s expected performance. There are a fair number of analysts who cover the stock, so it can be helpful to know their overall view on the future.

The knowledgeable property of Safran

The definition of a company insider can be subjective and does not vary in different jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately responds to the board of directors. However, it is not uncommon for directors to be members of the executive board, especially if they are a founder or CEO.

Most consider insider ownership to be a positive thing because it can indicate that the board is well aligned with other shareholders. However, in some cases, too much power is concentrated within this group.

Our information indicates that Safran SA insiders own less than 1% of the company. Since it’s such a big company, we’d only expect Insiders to own a small percentage of it. But it is worth noting that they own 31 million euros worth of shares. It’s nice to see board members own shares, but it can be worth checking If these insiders are buying.

Public property

The general public, usually individual investors, owns a 45% stake in Safran. This size of ownership may not be enough to change the company’s policy if the decision is not synchronized with other major shareholders.

Next steps:

While it is worth considering the different groups that own a company, other factors are more important.

Many find it useful For an in-depth look at the company’s past performance. You can access This is amazing Detailed graph From past earnings, revenue and cash flow.

If you’d rather find out what analysts are forecasting in terms of future growth, don’t miss it Free Analyst forecast report.

Note: The figures in this article are calculated using data from the past twelve months, which refers to the 12-month period ending at the last date of the month in which the financial statement is dated. This may not be consistent with the annual report numbers for the full year.

Evaluation is complex, but we help make it simple.

Find out if saffron potentially overvalued or undervalued by checking our comprehensive analysis, which includes Fair value estimates, risks and warnings, dividends, insider transactions and financial soundness.

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This article written by Simply Wall St is general in nature. We provide comments based on historical data and analyst predictions 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 it does not take into account your objectives or financial situation. We aim to provide you with focused, long-term analysis driven by fundamental data. Note that our analysis may not include the company’s most recent price-sensitive announcements or specific materials. Wall Street simply has no position in any of the stocks mentioned.

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