With 38% ownership of the shares, Bechtle AG (ETR:BC8) is heavily dominated by institutional owners

In This Article:

Key Insights

  • Institutions' substantial holdings in Bechtle implies that they have significant influence over the company's share price

  • The top 6 shareholders own 51% of the company

  • Insiders own 29% of Bechtle

Every investor in Bechtle AG (ETR:BC8) should be aware of the most powerful shareholder groups. With 38% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of Bechtle.

See our latest analysis for Bechtle

ownership-breakdown
XTRA:BC8 Ownership Breakdown May 20th 2023

What Does The Institutional Ownership Tell Us About Bechtle?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Bechtle. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Bechtle's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
XTRA:BC8 Earnings and Revenue Growth May 20th 2023

Bechtle is not owned by hedge funds. The company's largest shareholder is Karin Schick-Krief, with ownership of 25%. Meanwhile, the second and third largest shareholders, hold 6.2% and 5.2%, of the shares outstanding, respectively.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Bechtle

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.