In This Article:
Key Insights
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Institutions' substantial holdings in Gerresheimer implies that they have significant influence over the company's share price
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The top 15 shareholders own 52% of the company
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Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of Gerresheimer AG (ETR:GXI) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 70% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
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.
Let's take a closer look to see what the different types of shareholders can tell us about Gerresheimer.
See our latest analysis for Gerresheimer
What Does The Institutional Ownership Tell Us About Gerresheimer?
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.
We can see that Gerresheimer does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Gerresheimer, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Gerresheimer. Goldman Sachs Asset Management, L.P. is currently the company's largest shareholder with 8.5% of shares outstanding. With 3.8% and 3.5% of the shares outstanding respectively, The Vanguard Group, Inc. and Amundi Asset Management SAS are the second and third largest shareholders.
A closer look at our ownership figures suggests that the top 15 shareholders have a combined ownership of 52% implying that no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.