Yahoo Finance Why Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco’s (EPA:BAIN) Ownership Structure Is Important
In this analysis, my focus will be on developing a perspective on Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco’s (ENXTPA:BAIN) latest ownership structure, a less discussed, but important factor. When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. Differences in ownership structure of companies can have a profound effect on how management’s incentives are aligned with shareholder returns, which is why we’ll take a moment to analyse BAIN’s shareholder registry.
Institutional Ownership
Institutional investors transact in large blocks which can influence the momentum of stock prices, at least in the short-term, especially when there is a low level of public shares available on the market to trade. With an institutional ownership of 4.39%, BAIN doesn’t seem too exposed to higher volatility resulting from institutional trading.
General Public Ownership
The general public holds a substantial 26.14% stake in BAIN, making it a highly popular stock among retail investors. With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.
Public Company Ownership
Another important group of owners for potential investors in BAIN are other public companies that hold a stake of 10.00% in BAIN. These are the companies that are mainly invested due to their strategic interests or incentivized by reaping capital gains on investments. This kind of ownership, if predominantly strategic, can give these companies a significant power to affect BAIN’s business strategy. Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.
Next Steps:
With a low level of institutional ownership, investors in BAIN need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices. However, ownership structure should not be the only determining factor when you’re building an investment thesis for BAIN. Rather, you should be examining fundamental factors such as the intrinsic valuation, which is a key driver of Société Anonyme des Bains de Mer et du Cercle des Étrangers à Monaco’s share price. I highly recommend you to complete your research by taking a look at the following:
Financial Health: Is BAIN’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Past Track Record: Has BAIN been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of BAIN’s historicals for more clarity.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
