Institutional investors may adopt severe steps after Prodea Real Estate Investment Company Société Anonyme's (ATH:PRODEA) latest 3.3% drop adds to a year losses

Key Insights

• Significantly high institutional ownership implies Prodea Real Estate Investment Company Société Anonyme's stock price is sensitive to their trading actions
• Invel Real Estate (Netherlands) II BV owns 78% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls Prodea Real Estate Investment Company Société Anonyme (ATH:PRODEA), then you'll have to look at the makeup of its share registry. With 79% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And institutional investors saw their holdings value drop by 3.3% last week. The recent loss, which adds to a one-year loss of 17% for stockholders, may not sit well with this group of investors. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the downtrend continues, institutions may face pressures to sell Prodea Real Estate Investment Company Société Anonyme, which might have negative implications on individual investors.

Let's delve deeper into each type of owner of Prodea Real Estate Investment Company Société Anonyme, beginning with the chart below.

See our latest analysis for Prodea Real Estate Investment Company Société Anonyme

What Does The Institutional Ownership Tell Us About Prodea Real Estate Investment Company Société Anonyme?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Prodea Real Estate Investment Company Société Anonyme does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Prodea Real Estate Investment Company Société Anonyme, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Prodea Real Estate Investment Company Société Anonyme. Invel Real Estate (Netherlands) II BV is currently the company's largest shareholder with 78% of shares outstanding. This implies that they have majority interest control of the future of the company. Yoda PLC is the second largest shareholder owning 5.0% of common stock, and Anthos Properties S.A. holds about 2.1% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Prodea Real Estate Investment Company Société Anonyme

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own less than 1% of Prodea Real Estate Investment Company Société Anonyme. 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 €1.0m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Prodea Real Estate Investment Company Société Anonyme. 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.

Public Company Ownership

It appears to us that public companies own 5.0% of Prodea Real Estate Investment Company Société Anonyme. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Prodea Real Estate Investment Company Société Anonyme better, we need to consider many other factors. For example, we've discovered 4 warning signs for Prodea Real Estate Investment Company Société Anonyme (3 shouldn't be ignored!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.