Stabilus SE (ETR:STM) is largely controlled by institutional shareholders who own 82% of the company
In This Article:
Key Insights
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Institutions' substantial holdings in Stabilus implies that they have significant influence over the company's share price
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A total of 8 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
Every investor in Stabilus SE (ETR:STM) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 82% ownership. 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. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
Let's take a closer look to see what the different types of shareholders can tell us about Stabilus.
Check out our latest analysis for Stabilus
What Does The Institutional Ownership Tell Us About Stabilus?
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.
Stabilus already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Stabilus, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. It looks like hedge funds own 5.0% of Stabilus shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is FMR LLC, with ownership of 11%. In comparison, the second and third largest shareholders hold about 11% and 10.0% of the stock.
On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.