Every investor in Andritz AG (VIE:ANDR) should know the most powerful shareholder groups. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.
With a market cap of €4.2 billion, Andritz is pretty big. We expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Looking at our ownership group data (below), it appears that institutions are visible on the share register. Let’s dig deeper into each owner type to learn more about Andritz.
See our latest analysis for Andritz
What does institutional ownership tell us about Andritz?
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.
As you can see, institutional investors own a sizeable share of Andritz. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Andritz’s earnings history below. Of course, the future is what really matters.
We note that hedge funds have no significant investment in Andritz. Looking at our data, we can see that the major shareholder is Custos Vermögensverwaltungs GmbH with 31% of the outstanding shares. In comparison, the second and third shareholders hold around 3.8% and 2.6% of the shares.
Looking at the shareholder register, we can see that 50% of the ownership is controlled by the 14 major shareholders, which means that no shareholder has a controlling interest in the ownership.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to know their overall view on the future.
Andritz Insider Property
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Our information suggests that Andritz AG insiders own less than 1% of the company. However, insiders may have an indirect interest through a more complex structure. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders hold €252,000 worth of shares. Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.
General public property
With a 42% stake, the general public, consisting mostly of individual investors, has some influence over Andritz. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.
Private Company Ownership
Our data indicates that private companies own 31% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
It is always useful to think about the different groups that own shares in a company. But to better understand Andritz, we need to consider many other factors. Consider the risks, for example. Every business has them, and we’ve spotted 1 warning sign for Andritz you should know.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.