In This Article:
Key Insights
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Given the large stake in the stock by institutions, Infineon Technologies' stock price might be vulnerable to their trading decisions
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A total of 25 investors have a majority stake in the company with 36% ownership
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
To get a sense of who is truly in control of Infineon Technologies AG (ETR:IFX), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 51% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutional investors would appreciate the 4.4% increase in share price last week, given their one-year losses have totalled a disappointing 3.1%.
Let's delve deeper into each type of owner of Infineon Technologies, beginning with the chart below.
View our latest analysis for Infineon Technologies
What Does The Institutional Ownership Tell Us About Infineon Technologies?
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.
We can see that Infineon Technologies 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Infineon Technologies, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Infineon Technologies. Our data shows that BlackRock, Inc. is the largest shareholder with 6.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.9% and 3.0% of the stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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.