Painful week for retail investors invested in Royal Unibrew A/S (CPH:RBREW) after 4.0% drop, institutions also suffered losses

Simply Wall St · 10/17 04:10

Key Insights

  • Royal Unibrew's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 50% of the business is held by the top 22 shareholders
  • Institutional ownership in Royal Unibrew is 42%

To get a sense of who is truly in control of Royal Unibrew A/S (CPH:RBREW), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions, who own 42% shares weren’t spared from last week’s kr.1.1b market cap drop, retail investors as a group suffered the maximum losses

Let's delve deeper into each type of owner of Royal Unibrew, beginning with the chart below.

See our latest analysis for Royal Unibrew

ownership-breakdown
CPSE:RBREW Ownership Breakdown October 17th 2024

What Does The Institutional Ownership Tell Us About Royal Unibrew?

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.

We can see that Royal Unibrew does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Royal Unibrew, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
CPSE:RBREW Earnings and Revenue Growth October 17th 2024

Hedge funds don't have many shares in Royal Unibrew. Our data shows that Chr. Augustinus Fabrikker Aktieselskab is the largest shareholder with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.1% and 5.0% of the stock.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 22 shareholders, meaning that no single shareholder has a majority interest in the ownership.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Royal Unibrew

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own less than 1% of Royal Unibrew A/S. But they may have an indirect interest through a corporate structure that we haven't picked up on. Keep in mind that it's a big company, and the insiders own kr.57m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Royal Unibrew. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 15%, of the Royal Unibrew stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Royal Unibrew you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.