Exasol AG's (ETR:EXL) 11% gain last week benefited both retail investors who own 52% as well as insiders
In This Article:
Key Insights
-
Significant control over Exasol by retail investors implies that the general public has more power to influence management and governance-related decisions
-
A total of 21 investors have a majority stake in the company with 49% ownership
Every investor in Exasol AG (ETR:EXL) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 52% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While retail investors were the group that reaped the most benefits after last week’s 11% price gain, insiders also received a 25% cut.
In the chart below, we zoom in on the different ownership groups of Exasol.
Check out our latest analysis for Exasol
What Does The Institutional Ownership Tell Us About Exasol?
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 Exasol. 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. 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 Exasol, (below). Of course, keep in mind that there are other factors to consider, too.
Exasol is not owned by hedge funds. Knud Klingler is currently the company's largest shareholder with 21% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.8% and 3.8% of the stock.
Our studies suggest that the top 21 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Exasol
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.