Compagnie Plastic Omnium SE's (EPA:POM) biggest owners are public companies who got richer after stock soared 3.7% last week

Simply Wall St · 09/15/2023 04:23

Key Insights

  • Significant control over Compagnie Plastic Omnium by public companies implies that the general public has more power to influence management and governance-related decisions
  • The largest shareholder of the company is Burelle SA with a 61% stake
  • Institutions own 18% of Compagnie Plastic Omnium

If you want to know who really controls Compagnie Plastic Omnium SE (EPA:POM), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 61% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies were the biggest beneficiaries of last week’s 3.7% gain.

Let's delve deeper into each type of owner of Compagnie Plastic Omnium, beginning with the chart below.

See our latest analysis for Compagnie Plastic Omnium

ownership-breakdown
ENXTPA:POM Ownership Breakdown September 15th 2023

What Does The Institutional Ownership Tell Us About Compagnie Plastic Omnium?

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 Compagnie Plastic Omnium does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Compagnie Plastic Omnium's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTPA:POM Earnings and Revenue Growth September 15th 2023

Hedge funds don't have many shares in Compagnie Plastic Omnium. The company's largest shareholder is Burelle SA, with ownership of 61%. This implies that they have majority interest control of the future of the company. Schroder Investment Management Limited is the second largest shareholder owning 3.0% of common stock, and Capital Research and Management Company holds about 2.0% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Compagnie Plastic Omnium

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can report that insiders do own shares in Compagnie Plastic Omnium SE. This is a big company, so it is good to see this level of alignment. Insiders own €27m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 61% of Compagnie Plastic Omnium. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Compagnie Plastic Omnium has 2 warning signs we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.