Hensoldt AG's (ETR:5UH) institutional investors lost 5.3% over the past week but have profited from longer-term gains
In This Article:
Key Insights
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Given the large stake in the stock by institutions, Hensoldt's stock price might be vulnerable to their trading decisions
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The top 2 shareholders own 50% of the company
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Hensoldt AG (ETR:5UH) can tell us which group is most powerful. The group holding the most number of shares in the company, around 30% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).
Losing money on investments is something no shareholder enjoys, least of all institutional investors who saw their holdings value drop by 5.3% last week. Still, the 15% one-year gains may have helped mitigate their overall losses. They should, however, be mindful of further losses in the future.
Let's take a closer look to see what the different types of shareholders can tell us about Hensoldt.
See our latest analysis for Hensoldt
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.
As you can see, institutional investors have a fair amount of stake in Hensoldt. 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 Hensoldt's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Hensoldt. Our data shows that Germany is the largest shareholder with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 25% and 5.0% of the stock.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.