Could The Koninklijke Ahold Delhaize N.V. (AMS:AD) Ownership Structure Tell Us Something Useful?

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If you want to know who really controls Koninklijke Ahold Delhaize N.V. (AMS:AD), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

Koninklijke Ahold Delhaize is a pretty big company. It has a market capitalization of €22b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about AD.

Check out our latest analysis for Koninklijke Ahold Delhaize

ENXTAM:AD Ownership Summary, June 3rd 2019
ENXTAM:AD Ownership Summary, June 3rd 2019

What Does The Institutional Ownership Tell Us About Koninklijke Ahold Delhaize?

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.

As you can see, institutional investors own 45% of Koninklijke Ahold Delhaize. 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. 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 Koninklijke Ahold Delhaize's earnings history, below. Of course, the future is what really matters.

ENXTAM:AD Income Statement, June 3rd 2019
ENXTAM:AD Income Statement, June 3rd 2019

Koninklijke Ahold Delhaize is not owned by hedge funds. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Koninklijke Ahold Delhaize

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Koninklijke Ahold Delhaize N.V.. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own €41m worth of shares. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

The general public -- mostly retail investors -- own 55% of Koninklijke Ahold Delhaize . This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

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