Public companies are DWS Group GmbH & Co. KGaA's (ETR:DWS) biggest owners and were hit after market cap dropped €1.4b

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editorial-team@simplywallst.com (Simply Wall St)

Sat, Jun 8, 2024, 2:05 AM 4 min read

The considerable ownership by public companies in DWS Group GmbH KGaA indicates that they collectively have a greater say in management and business strategy
The largest shareholder of the company is Deutsche Bank Aktiengesellschaft with a 79% stake
Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

If you want to know who really controls DWS Group GmbH & Co. KGaA (ETR:DWS), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 79% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, public companies endured the biggest losses as the stock fell by 17%.

Let's take a closer look to see what the different types of shareholders can tell us about DWS Group GmbH KGaA.

Check out our latest analysis for DWS Group GmbH KGaA

ownership-breakdown — XTRA:DWS Ownership Breakdown June 8th 2024

What Does The Institutional Ownership Tell Us About DWS Group GmbH KGaA?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in DWS Group GmbH KGaA. 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 DWS Group GmbH KGaA's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — XTRA:DWS Earnings and Revenue Growth June 8th 2024

We note that hedge funds don't have a meaningful investment in DWS Group GmbH KGaA. The company's largest shareholder is Deutsche Bank Aktiengesellschaft, with ownership of 79%. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 0.8% by the third-largest shareholder.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of DWS Group GmbH KGaA

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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over DWS Group GmbH KGaA. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 79% of DWS Group GmbH KGaA. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for DWS Group GmbH KGaA you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.