Could the ownership structure of SCOR SE (EPA:SCR) tell us something useful?
A look at the shareholders of SCOR SE (EPA:SCR) can tell us which group is the most powerful. Generally speaking, as a company grows, institutions increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that were previously publicly owned tend to have less insider ownership.
SCOR has a market cap of €3.7 billion, so it’s too big to fly under the radar. We expect institutions and retail investors to own part of the business. Our analysis of societal ownership below shows that institutions own shares in society. Let’s dig deeper into each owner type to learn more about SCOR.
See our latest analysis for SCOR
What does institutional ownership tell us about SCOR?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors hold a significant share of SCOR. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the trajectory of SCOR’s past earnings (below). Of course, keep in mind that there are other factors to consider as well.
Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. We note that hedge funds have no significant investment in SCOR. Our data shows that Covéa Finance is the largest shareholder with 9.2% of shares outstanding. Meanwhile, the second and third largest shareholders hold 5.5% and 5.4% of the outstanding shares respectively.
After digging a little deeper, we found that the top 13 held combined ownership of 51% of the company, suggesting that no single shareholder has significant control over the company.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.
Insider ownership of SCOR
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
We may report that insiders hold SCOR SE shares. It’s a pretty big company, so it’s generally a positive to see a potentially meaningful alignment. In this case, they own about 39 million euros worth of shares (at current prices). Most would say this shows the alignment of interests between shareholders and the board. Still, it might be worth checking to see if these insiders have sold.
General public property
The general public, including retail investors, owns 38% of the company’s shares and therefore cannot be easily ignored. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private Company Ownership
We can see that private companies hold 3.2% of the shares issued. It’s hard to draw conclusions from this fact alone, so it’s worth investigating 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.
It is always useful to think about the different groups that own shares in a company. But to better understand SCOR, we need to consider many other factors. Consider the risks, for example. Every business has them, and we’ve spotted 2 warning signs for SCOR you should know.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.