Amadeus FiRe AG (ETR:AAD) is a favorite amongst institutional investors who own 58%

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

Sun, Nov 19, 2023, 12:11 AM 4 min read

Key Insights

Given the large stake in the stock by institutions, Amadeus FiRe's stock price might be vulnerable to their trading decisions
The top 19 shareholders own 50% of the company
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Amadeus FiRe AG (ETR:AAD) can tell us which group is most powerful. The group holding the most number of shares in the company, around 58% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let's delve deeper into each type of owner of Amadeus FiRe, beginning with the chart below.

See our latest analysis for Amadeus FiRe

ownership-breakdown — XTRA:AAD Ownership Breakdown November 19th 2023

What Does The Institutional Ownership Tell Us About Amadeus FiRe?

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.

As you can see, institutional investors have a fair amount of stake in Amadeus FiRe. 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 Amadeus FiRe, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — XTRA:AAD Earnings and Revenue Growth November 19th 2023

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 Amadeus FiRe. The company's largest shareholder is Dws Investment Gmbh, with ownership of 8.4%. With 5.2% and 5.0% of the shares outstanding respectively, Invesco Ltd. and EQS Group AG are the second and third largest shareholders.

After doing some more digging, we found that the top 19 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Amadeus FiRe

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that Amadeus FiRe AG insiders own under 1% of the company. It appears that the board holds about €1.2m worth of stock. This compares to a market capitalization of €653m. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Amadeus FiRe. 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 5.0% of Amadeus FiRe. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Amadeus FiRe you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.