Public companies account for 36% of Friedrich Vorwerk Group SE's (ETR:VH2) ownership, while institutions account for 25%
Simply Wall St
4 min read
Key Insights
Significant control over Friedrich Vorwerk Group by public companies implies that the general public has more power to influence management and governance-related decisions
Every investor in Friedrich Vorwerk Group SE (ETR:VH2) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 36% to be precise, is public companies. 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 25% 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 take a closer look to see what the different types of shareholders can tell us about Friedrich Vorwerk Group.
What Does The Institutional Ownership Tell Us About Friedrich Vorwerk 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.
Friedrich Vorwerk Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Friedrich Vorwerk Group's historic earnings and revenue below, but keep in mind there's always more to the story.
XTRA:VH2 Earnings and Revenue Growth July 2nd 2023
Hedge funds don't have many shares in Friedrich Vorwerk Group. MBB SE is currently the largest shareholder, with 36% of shares outstanding. Torben Kleinfeldt is the second largest shareholder owning 18% of common stock, and Mondrian Investment Partners Limited holds about 4.9% of the company stock. Torben Kleinfeldt, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
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.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Friedrich Vorwerk Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own a reasonable proportion of Friedrich Vorwerk Group SE. Insiders have a €39m stake in this €219m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 21% stake in Friedrich Vorwerk Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Public Company Ownership
We can see that public companies hold 36% of the Friedrich Vorwerk Group shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
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.
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