In This Article:
Key Insights
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DSM-Firmenich's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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The top 25 shareholders own 47% of the company
If you want to know who really controls DSM-Firmenich AG (AMS:DSFIR), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 38% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While retail investors were the group that benefitted the most from last week’s €1.7b market cap gain, institutions too had a 35% share in those profits.
Let's delve deeper into each type of owner of DSM-Firmenich, beginning with the chart below.
Check out our latest analysis for DSM-Firmenich
What Does The Institutional Ownership Tell Us About DSM-Firmenich?
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.
DSM-Firmenich 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. 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 DSM-Firmenich, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in DSM-Firmenich. Norges Bank Investment Management is currently the company's largest shareholder with 4.9% of shares outstanding. For context, the second largest shareholder holds about 3.2% of the shares outstanding, followed by an ownership of 3.1% by the third-largest shareholder.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.