RENK Group AG's (FRA:R3NK) market cap dropped €178m last week; Retail investors bore the brunt

In This Article:

Key Insights

  • Significant control over RENK Group by retail investors implies that the general public has more power to influence management and governance-related decisions

  • A total of 8 investors have a majority stake in the company with 50% ownership

  • Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

Every investor in RENK Group AG (FRA:R3NK) should be aware of the most powerful shareholder groups. With 48% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 8.8% decline in share price, retail investors suffered the most losses.

In the chart below, we zoom in on the different ownership groups of RENK Group.

See our latest analysis for RENK Group

ownership-breakdown
DB:R3NK Ownership Breakdown October 15th 2024

What Does The Institutional Ownership Tell Us About RENK Group?

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.

RENK Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 RENK Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
DB:R3NK Earnings and Revenue Growth October 15th 2024

Hedge funds don't have many shares in RENK Group. Triton V S.à r.l. SICAV-RAIF is currently the largest shareholder, with 34% of shares outstanding. For context, the second largest shareholder holds about 6.7% of the shares outstanding, followed by an ownership of 4.2% by the third-largest shareholder.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of RENK Group

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.