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Do Directors Own Wereldhave N.V. (AMS:WHA) Shares?

If you want to know who really controls Wereldhave N.V. (AMS:WHA), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

Wereldhave isn't enormous, but it's not particularly small either. It has a market capitalization of €807m, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about WHA.

Check out our latest analysis for Wereldhave

ENXTAM:WHA Ownership Summary, October 2nd 2019
ENXTAM:WHA Ownership Summary, October 2nd 2019

What Does The Institutional Ownership Tell Us About Wereldhave?

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.

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Wereldhave already has institutions on the share registry. Indeed, they own 21% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Wereldhave's historic earnings and revenue, below, but keep in mind there's always more to the story.

ENXTAM:WHA Income Statement, October 2nd 2019
ENXTAM:WHA Income Statement, October 2nd 2019

We note that hedge funds don't have a meaningful investment in Wereldhave. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Wereldhave

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. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that Wereldhave N.V. insiders own under 1% of the company. It appears that the board holds about €749k worth of stock. This compares to a market capitalization of €807m. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- mostly retail investors -- own 64% of Wereldhave. With this size 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 decline an acquisition or merger that may not improve profitability.

Private Equity Ownership

With a stake of 15%, private equity firms could influence the WHA board. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Wereldhave better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.