MTU Aero Engines AG (ETR:MTX) is favoured by institutional owners who hold 64% of the company
In This Article:
Key Insights
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Institutions' substantial holdings in MTU Aero Engines implies that they have significant influence over the company's share price
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52% of the business is held by the top 12 shareholders
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
To get a sense of who is truly in control of MTU Aero Engines AG (ETR:MTX), it is important to understand the ownership structure of the business. We can see that institutions own the lion's share in the company with 64% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of MTU Aero Engines.
See our latest analysis for MTU Aero Engines
What Does The Institutional Ownership Tell Us About MTU Aero Engines?
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 MTU Aero Engines 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. 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 MTU Aero Engines' historic earnings and revenue below, but keep in mind there's always more to the story.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in MTU Aero Engines. Our data shows that BlackRock, Inc. is the largest shareholder with 13% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.8% and 3.9% of the stock.
After doing some more digging, we found that the top 12 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.