Individual investors own 11% of DWS Group GmbH & Co. KGaA (ETR:DWS) shares but public companies control 79% of the company
Key Insights
The considerable ownership by public companies in DWS Group GmbH KGaA indicates that they collectively have a greater say in management and business strategy
Deutsche Bank Aktiengesellschaft owns 79% of the company
Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of DWS Group GmbH & Co. KGaA (ETR:DWS) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 79% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual investors make up 11% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about DWS Group GmbH KGaA.
View our latest analysis for DWS Group GmbH KGaA
What Does The 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 have a fair amount of stake in DWS Group GmbH KGaA. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 DWS Group GmbH KGaA's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in DWS Group GmbH KGaA. Deutsche Bank Aktiengesellschaft is currently the largest shareholder, with 79% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 0.9% by the third-largest shareholder.
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.
Insider Ownership Of DWS Group GmbH KGaA
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.
General Public Ownership
The general public, who are usually individual investors, hold a 11% stake in DWS Group GmbH KGaA. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Public Company Ownership
We can see that public companies hold 79% of the DWS Group GmbH KGaA shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for DWS Group GmbH KGaA that you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
