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A look at the shareholders of Hensoldt AG (ETR:5UH) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 35% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 6.6% increase in the stock price last week, individual investors profited the most, but institutions who own 29% stock also stood to gain from the increase.
Let's take a closer look to see what the different types of shareholders can tell us about Hensoldt.
See our latest analysis for Hensoldt
What Does The Institutional Ownership Tell Us About Hensoldt?
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.
We can see that Hensoldt does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Hensoldt's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Hensoldt. Our data shows that KfW is the largest shareholder with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 10.0% and 5.5% of the stock.
We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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.
Insider Ownership Of Hensoldt
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.