Institutions own 28% of Vitesco Technologies Group Aktiengesellschaft (ETR:VTSC) shares but private companies control 55% of the company
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by private companies in Vitesco Technologies Group indicates that they collectively have a greater say in management and business strategy
To get a sense of who is truly in control of Vitesco Technologies Group Aktiengesellschaft (ETR:VTSC), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And institutions on the other hand have a 28% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
Let's delve deeper into each type of owner of Vitesco Technologies Group, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Vitesco Technologies Group?
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.
We can see that Vitesco Technologies Group does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Vitesco Technologies Group's earnings history below. Of course, the future is what really matters.
XTRA:VTSC Earnings and Revenue Growth September 25th 2023
Vitesco Technologies Group is not owned by hedge funds. INA-Holding Schaeffler GmbH & Co. KG is currently the company's largest shareholder with 50% of shares outstanding. ASW Privatstiftung is the second largest shareholder owning 5.0% of common stock, and David Einhorn holds about 3.0% of the company stock.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Vitesco Technologies Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We can report that insiders do own shares in Vitesco Technologies Group Aktiengesellschaft. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around €93m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
It seems that Private Companies own 55%, of the Vitesco Technologies Group stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
