What types of shareholders hold the majority of shares in Royal Vopak NV (AMS: VPK)?
A look at the shareholders of Royal Vopak NV (AMS: VPK) can tell us which group is more powerful. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.
Royal Vopak has a market cap of 4.4 billion euros, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. We can zoom in on the different property groups, to find out more about Royal Vopak.
Check out our latest review for Royal Vopak
What does institutional ownership tell us about Royal Vopak?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors own a significant stake in Royal Vopak. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Royal Vopak’s historical revenue and income below, but keep in mind that there is always more to tell.
We note that the hedge funds do not have a significant investment in Royal Vopak. The main shareholder of the company is HAL Investments BV, with a 48% stake. For context, the second largest shareholder owns approximately 3.0% of the outstanding shares, followed by 2.8% ownership by the third largest shareholder.
A more detailed study of the register of shareholders showed us that 2 of the major shareholders hold a considerable share of the ownership of the company, through their 51% stake.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider property of Royal Vopak
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
I can report that insiders own shares of Royal Vopak NV. It’s a big company, so it’s good to see that level of alignment. Insiders own 137 million euros in shares (at current prices). It’s good to see this level of investment from the insiders. You can check here if these insiders have bought recently.
General public property
The general public has a 25% stake in Royal Vopak. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
Private equity firms hold a 48% stake in Royal Vopak. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the business. Alternatively, these holders could withdraw from the investment after making it public.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Be aware that Royal Vopak shows 3 warning signs in our investment analysis , you must know…
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts‘ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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