In This Article:
Key Insights
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Significant control over thyssenkrupp by individual investors implies that the general public has more power to influence management and governance-related decisions
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50% of the business is held by the top 16 shareholders
To get a sense of who is truly in control of thyssenkrupp AG (ETR:TKA), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Institutions, on the other hand, account for 45% of the company's stockholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's delve deeper into each type of owner of thyssenkrupp, beginning with the chart below.
View our latest analysis for thyssenkrupp
What Does The Institutional Ownership Tell Us About thyssenkrupp?
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.
thyssenkrupp already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 thyssenkrupp, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in thyssenkrupp. Alfried Krupp Von Bohlen Und Halbach Stiftung, Endowment Arm is currently the largest shareholder, with 21% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.0% and 3.2% of the stock.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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.