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The big shareholder groups in Edel SE & Co. KGaA (ETR:EDL) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
Edel SE KGaA is not a large company by global standards. It has a market capitalization of €48m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutions don't own many shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about EDL.
Check out our latest analysis for Edel SE KGaA
What Does The Institutional Ownership Tell Us About Edel SE KGaA?
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.
Institutions own less than 5% of Edel SE KGaA. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
Hedge funds don't have many shares in Edel SE KGaA. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Edel SE KGaA
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
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 insiders own more than half of Edel SE & Co. KGaA. This gives them effective control of the company. That means they own €33m worth of shares in the €48m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.