Institutional investors are Siemens Energy AG's (ETR:ENR) biggest bettors and were rewarded after last week's €985m market cap gain
In This Article:
Key Insights
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Significantly high institutional ownership implies Siemens Energy's stock price is sensitive to their trading actions
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A total of 10 investors have a majority stake in the company with 53% ownership
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
If you want to know who really controls Siemens Energy AG (ETR:ENR), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 40% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).
And things are looking up for institutional investors after the company gained €985m in market cap last week. One-year return to shareholders is currently 67% and last week’s gain was the icing on the cake.
Let's take a closer look to see what the different types of shareholders can tell us about Siemens Energy.
View our latest analysis for Siemens Energy
What Does The Institutional Ownership Tell Us About Siemens Energy?
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.
We can see that Siemens Energy does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Siemens Energy's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Siemens Energy. Looking at our data, we can see that the largest shareholder is Siemens Aktiengesellschaft with 20% of shares outstanding. For context, the second largest shareholder holds about 6.8% of the shares outstanding, followed by an ownership of 4.4% by the third-largest shareholder.
On further inspection, we found that more than half the company's shares are owned by the top 10 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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.