What does the ownership structure of Banca IFIS SpA (BIT: IF) look like?

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The large groups of shareholders of Banca IFIS SpA (BIT: IF) have power over the company. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. We also tend to see a decrease in the number of insiders in companies that were previously state-owned.

With a market capitalization of 861 million euros, Banca IFIS is a decent size, so it is probably on the radar of institutional investors. In the graphic below, we can see that the institutions are visible on the share register. We can zoom in on the different property groups, to find out more about Banca IFIS.

See our latest analysis for Banca IFIS

BIT: IF Ownership distribution November 19, 2021

What does institutional ownership tell us about Banca IFIS?

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.

Banca IFIS already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking out the trajectory of past profits of Banca IFIS (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
BIT: FI Profits and revenue growth 19 November 2021

Hedge funds don’t have a lot of shares in Banca IFIS. La Scogliera SpA is currently the main shareholder, with 50% of the shares outstanding. Essentially, this means that they have considerable influence, if not absolute control, over the future of the business. In comparison, the second and third shareholders hold around 2.8% and 1.8% of the capital.

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. There are a lot of analysts covering the stock, so you can look at the expected growth quite easily.

Insider ownership of Banca IFIS

The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders of Banca IFIS SpA own less than 1% of the company. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. It appears that the board members have no more than 2.7 million euros of shares in the company at 861 million euros. Many tend to prefer to see a board with larger holdings. A good next step might be to take a look at this free insider buying and selling summary.

General public property

The general public, including retail investors, own 36% of the company’s capital and therefore cannot be easily ignored. 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.

Owned by a private company

We can see that the private companies own 53% of the issued shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Take risks for example – Banca IFIS has 1 warning sign we think you should be aware.

But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better 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.

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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