Individual investors are the biggest owners of Home Invest Belgium SA (EBR:HOMI) and have been rewarded after the market capitalization increased by 53 million euros last week

Every investor in Home Invest Belgium SA (EBR:HOMI) must know the most powerful shareholder groups. The group holding the largest number of shares in the company, around 51% to be precise, are made up of individual investors. In other words, the group faces the maximum upside potential (or downside risk).

As a result, individual investors collectively achieved the highest score last week, with the company reaching a market capitalization of 419 million euros after a 15% gain in the stock.

In the graph below, we zoom in on the different ownership groups of Home Invest Belgium.

If you are not interested in researching HOMI’s ownership structure, we have a free list of interesting investment ideas to potentially inspire your next investment!

ENXTBR: Distribution of ownership of HOMI on September 3, 2022

What does institutional ownership tell us about Home Invest Belgium?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

As you can see, institutional investors hold a significant share of Home Invest Belgium. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the earnings history of Home Invest Belgium below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTBR: HOMI Earnings and Revenue Growth September 3, 2022

We note that hedge funds have no significant investment in Home Invest Belgium. Our data shows that Stichting Administratiekantoor Stavos is the largest shareholder with 23% of outstanding shares. With respectively 16% and 3.1% of the outstanding shares, AXA Investment Managers SA and Stavos Luxembourg SA are the second and third shareholders.

A closer look at our ownership data shows that the top 17 shareholders collectively own less than half of the register, suggesting a large group of small shareholders where no single shareholder has a majority.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Insider ownership of Home Invest Belgium

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

We can see that insiders hold shares of Home Invest Belgium SA. It has a market capitalization of just 419 million euros and insiders hold 15 million euros worth of shares, in their own name. Some would say this shows the alignment of interests between shareholders and the board. But it might be worth checking to see if these insiders have sold.

General public property

The general public, who are usually individual investors, hold a substantial 51% stake in Home Invest Belgium, which suggests that it is quite a popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Company Ownership

Our data indicates that private companies hold 27% of the shares of society. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Home Invest Belgium, we must take into account many other factors. Like risks, for example. Every business has them, and we’ve spotted 3 warning signs for Home Invest Belgium (1 of which is a little unpleasant!) that you should know about.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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