Obrascón Huarte Lain, SA (BME:OHLA) Share Price Falls 12% Last Week; individual investors would not be happy

A look at the shareholders of Obrascón Huarte Lain, SA (BME: OHLA) can tell us which group is the most powerful. We can see that individual investors hold the lion’s share of the company with 56% ownership. In other words, the group faces the maximum upside potential (or downside risk).

And last week, individual investors suffered the biggest losses as the stock fell 12%.

Let’s take a closer look at what different types of shareholders can tell us about Obrascón Huarte Lain.

However, if you prefer to see where opportunities and risks are within the OHLA industryyou can check out our analysis on the ES Construction industry.

BME: OHLA Property Breakdown September 24, 2022

What does institutional ownership tell us about Obrascón Huarte Lain?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

As you can see, institutional investors hold a sizeable share of Obrascón Huarte Lain. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Obrascón Huarte Lain’s historical earnings and earnings below, but keep in mind there’s always more to the story.

BME: OHLA Earnings and Revenue Growth September 24, 2022

Hedge funds do not have many shares in Obrascón Huarte Lain. Looking at our data, we can see that the major shareholder is Forjar Capital, SLU with 13% of the outstanding shares. In comparison, the second and third shareholders hold around 13% and 7.1% of the shares.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely distributed and there is no dominant shareholder.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider property of Obrascón Huarte Lain

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

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 data does not allow us to confirm that the members of the board of directors personally hold shares. Since we do not track insider ownership, we may have missing data. It would therefore be interesting to evaluate here the remuneration and the duration of the mandate of the CEO.

General public property

The general public, including retail investors, owns 56% of Obrascón Huarte Lain. This size of ownership gives mainstream investors a certain collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed corporate acquisitions.

Private Company Ownership

Our data indicates that private companies hold 33% of the shares of society. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors.

I always like to check a revenue growth history. You can also, by accessing this free revenue and profit history chart in this detailed graph.

At the end of the day the future is the most important. You can access this free analyst forecast report for the company.

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 the financial statements are dated. This may not be consistent with the annual report figures for the full year.

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.

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Sallie R. Loera