In This Article:
Key Insights
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The considerable ownership by individual investors in GFT Technologies indicates that they collectively have a greater say in management and business strategy
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A total of 7 investors have a majority stake in the company with 51% ownership
Every investor in GFT Technologies SE (ETR:GFT) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 37% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual insiders make up 36% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
In the chart below, we zoom in on the different ownership groups of GFT Technologies.
View our latest analysis for GFT Technologies
What Does The Institutional Ownership Tell Us About GFT Technologies?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that GFT Technologies does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 GFT Technologies' historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in GFT Technologies. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In GFT Technologies' case, its Top Key Executive, Ulrich Dietz, is the largest shareholder, holding 26% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.5% and 5.0%, of the shares outstanding, respectively.
We also observed that the top 7 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 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.