ADS-TEC Energy PLC's (NASDAQ:ADSE) biggest owners are private companies who got richer after stock soared 25% last week
Key Insights
Significant control over ADS-TEC Energy by private companies implies that the general public has more power to influence management and governance-related decisions
The top 3 shareholders own 54% of the company
Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
A look at the shareholders of ADS-TEC Energy PLC (NASDAQ:ADSE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 49% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, private companies were the biggest beneficiaries of last week’s 25% gain.
Let's delve deeper into each type of owner of ADS-TEC Energy, beginning with the chart below.
View our latest analysis for ADS-TEC Energy
What Does The Institutional Ownership Tell Us About ADS-TEC Energy?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
ADS-TEC Energy 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. 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 ADS-TEC Energy's earnings history below. Of course, the future is what really matters.
Our data indicates that hedge funds own 5.0% of ADS-TEC Energy. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The company's largest shareholder is ads-tec Holding GmbH, with ownership of 33%. Robert Bosch GmbH is the second largest shareholder owning 16% of common stock, and Lucerne Capital Management, LP holds about 5.0% of the company stock.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 54% stake.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of ADS-TEC Energy
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in ADS-TEC Energy PLC. As individuals, the insiders collectively own US$7.5m worth of the US$465m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over ADS-TEC Energy. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
It seems that Private Companies own 49%, of the ADS-TEC Energy stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand ADS-TEC Energy better, we need to consider many other factors. Be aware that ADS-TEC Energy is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
