Public companies represent 79% of the ownership of DWS Group GmbH & Co. KGaA (ETR: DWS), while institutions represent 10%
A look at the shareholders of DWS Group GmbH & Co. KGaA (ETR:DWS) can tell us which group is the most powerful. The group holding the largest number of company shares, around 79% to be precise, are public companies. In other words, the group faces the maximum upside potential (or downside risk).
Institutions, on the other hand, represent 10% of the company’s shareholders. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies.
In the table below we zoom in on the different ownership groups of DWS Group GmbH KGaA.
However, if you prefer to see where opportunities and risks are within the DWS industryyou can check out our analysis of the DE Capital Markets sector.
What does institutional ownership tell us about DWS Group GmbH KGaA?
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 hold a sizeable share of DWS Group GmbH KGaA. 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. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see DWS Group GmbH KGaA’s historical earnings and revenue below, but keep in mind there’s always more to tell.
We note that hedge funds have no significant investment in DWS Group GmbH KGaA. Our data shows that Deutsche Bank Aktiengesellschaft is the largest shareholder with 79% of shares outstanding. With such a stake in ownership, we infer that they have significant control over the future of the business. With 5.0% and 1.2% of outstanding shares, respectively, Nippon Life Insurance Company, Asset Management Arm and Union Asset Management Holding AG are the second and third largest shareholders.
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.
Insider ownership of DWS Group GmbH KGaA
The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
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.
We note that our data does not show any board members personally owning shares. Not all jurisdictions have the same rules regarding insider ownership disclosure, and we may be missing something here. So you can click here to learn more about the CEO.
General public property
The general public, who are usually individual investors, hold a 10% stake in DWS Group GmbH KGaA. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Ownership of a public company
We understand that public companies own 79% of DWS Group GmbH KGaA. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.
It is always useful to think about the different groups that own shares in a company. But to better understand DWS Group GmbH KGaA, we need to consider many other factors. For example, we have identified 1 warning sign for DWS Group GmbH KGaA of which you should be aware.
But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter 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 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.
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