Technip Energies NV (EPA:TE) has attracted the attention of institutional investors who hold a significant 45% stake

Key ideas

• Given the strong institutional participation in the stock, Technip Energies’ share price could be vulnerable to their trading decisions.
• The top 13 shareholders own 50% of the company
• Insiders have been buying lately

If you want to know who really controls Technip Energies NV (EPA:TE), you need to look at the composition of its share register. We can see that institutions hold the lion’s share of the company with 45% of the capital. In other words, the group has the most to gain (or lose) from its investment in the company.

Given the sheer amount of money and research capabilities at their disposal, institutional ownership tends to carry weight, especially among individual investors. As a result, a large institutional sum invested in a company is generally seen as a positive attribute.

Let’s take a closer look at each type of Technip Energies owner, starting with the table below.

Check out our latest analysis for Technip Energies

What does institutional shareholding tell us about Technip Energies?

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

We see that Technip Energies has institutional investors; and they own a good portion of the company’s shares. This suggests a certain credibility among professional investors. But we can’t rely on that fact alone, because institutions make bad investments sometimes, just like everyone else. If multiple institutions change their views on a stock at the same time, the stock price could fall quickly. It is therefore appropriate to consult Technip Energies’ historical results below. Of course, it’s the future that really matters.

Technip Energies is not owned by hedge funds. Our data shows that HAL Investments BV is the largest shareholder with 15% of the shares outstanding. In comparison, the second and third largest shareholders hold around 10% and 6.6% of the shares.

After digging a little deeper, we found that the top 13 together own 50% of the company, suggesting that no single shareholder has significant control over the company.

Studying institutional investors is a good way to gauge and filter a stock’s expected performance. The same result can be achieved by studying analyst sentiments. Many analysts cover the stock, so it can be interesting to see what they are predicting as well.

Insider ownership in Technip Energies

Although the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board of directors. However, it is not uncommon for managers to be board members, especially if they are a founder or CEO.

Generally, I consider insider ownership to be a good thing. However, in some cases it makes it more difficult for other shareholders to hold the board of directors accountable.

Our information suggests that Technip Energies NV insiders own less than 1% of the company. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders own €12 million worth of shares. It’s always good to see at least some insider ownership, but it might be worth checking to see if those insiders have been selling.

General public property

The general public, typically retail investors, own 28% of Technip Energies. While this size of ownership may not be enough to swing a policy decision in their favor, they can still have a collective impact on the company’s policies.

Private Equity Ownership

Private equity firms hold a 26% stake in Technip Energies. That suggests they can influence key policy decisions. That might appeal to some, because sometimes private equity is an activist that holds management to account. But other times, private equity sells out, after taking the company public.

Next steps:

I find it very interesting to know who exactly owns a company. But to really know more, we also need to take into account other information. For example: we have spotted 1 warning sign for Technip Energies you should be aware of.

But finally it’s the futureIt is not the past that will determine the success of the owners of this business. That’s why we think it’s a good idea to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated from the last twelve months 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 figures in the annual report 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 using only unbiased methodology and our articles are not intended to constitute financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your objectives or your financial situation. Our goal is to provide you with targeted, long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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