Hensoldt AG (ETR:5UH) is definitely on the radar of institutional investors who own 29% of the company

In This Article:

Key Insights

  • Significantly high institutional ownership implies Hensoldt's stock price is sensitive to their trading actions

  • 51% of the business is held by the top 3 shareholders

  • 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 Hensoldt AG (ETR:5UH), 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 29% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

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

See our latest analysis for Hensoldt

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Hensoldt?

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.

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

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

We note that hedge funds don't have a meaningful investment in Hensoldt. The company's largest shareholder is Germany, with ownership of 23%. In comparison, the second and third largest shareholders hold about 23% and 5.4% of the stock.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.