Public companies account for 60% of trivago N.V.'s (NASDAQ:TRVG) ownership, while insiders account for 22%
Key Insights
trivago's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
60% of the company is held by a single shareholder (Expedia Group, Inc.)
A look at the shareholders of trivago N.V. (NASDAQ:TRVG) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And individual insiders on the other hand have a 22% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of trivago, beginning with the chart below.
Check out our latest analysis for trivago
What Does The Institutional Ownership Tell Us About trivago?
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.
Institutions have a very small stake in trivago. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Hedge funds don't have many shares in trivago. Looking at our data, we can see that the largest shareholder is Expedia Group, Inc. with 60% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 18% and 2.3% of the shares outstanding respectively, Rolf Theo Schromgens and Axel Hefer are the second and third largest shareholders. Rolf Theo Schromgens, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.
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 trivago
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 information suggests that insiders maintain a significant holding in trivago N.V.. It has a market capitalization of just US$173m, and insiders have US$38m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. 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.
Public Company Ownership
We can see that public companies hold 60% of the trivago 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for trivago you should know about.
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.
