In This Article:
Key Insights
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ElringKlinger's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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52% of the business is held by the top 3 shareholders
To get a sense of who is truly in control of ElringKlinger AG (ETR:ZIL2), it is important to understand the ownership structure of the business. With 44% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Institutions, on the other hand, account for 36% of the company's stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about ElringKlinger.
View our latest analysis for ElringKlinger
What Does The Institutional Ownership Tell Us About ElringKlinger?
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 ElringKlinger 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. 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 ElringKlinger's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in ElringKlinger. Paul Lechler Stiftung gGmbH, Endowment Arm is currently the largest shareholder, with 32% of shares outstanding. The second and third largest shareholders are Elgarta GmbH and Lechler Beteiligungs-GmbH, with an equal amount of shares to their name at 10%.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of ElringKlinger
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.