Fielmann Group AG's (ETR:FIE) last week's 4.2% decline must have disappointed private companies who have a significant stake

In This Article:

Key Insights

  • The considerable ownership by private companies in Fielmann Group indicates that they collectively have a greater say in management and business strategy

  • The largest shareholder of the company is Korva SE with a 55% stake

  • Insider ownership in Fielmann Group is 21%

If you want to know who really controls Fielmann Group AG (ETR:FIE), 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 55% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 4.2% decrease in the stock price last week, private companies suffered the most losses, but insiders who own 21% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Fielmann Group.

View our latest analysis for Fielmann Group

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Fielmann Group?

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.

Fielmann Group 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 Fielmann Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Fielmann Group is not owned by hedge funds. The company's largest shareholder is Korva SE, with ownership of 55%. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 13% and 8.8%, of the shares outstanding, respectively.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Fielmann Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.