RATIONAL Aktiengesellschaft (ETR:RAA) stock most popular amongst retail investors who own 32%, while private companies hold 32%
Key Insights
Significant control over RATIONAL by retail investors implies that the general public has more power to influence management and governance-related decisions
A total of 3 investors have a majority stake in the company with 50% ownership
Insiders own 16% of RATIONAL
Every investor in RATIONAL Aktiengesellschaft (ETR:RAA) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 32% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, private companies make up 32% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of RATIONAL.
View our latest analysis for RATIONAL
What Does The Institutional Ownership Tell Us About RATIONAL?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that RATIONAL does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see RATIONAL's historic earnings and revenue below, but keep in mind there's always more to the story.
RATIONAL is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Estate Of Siegfried Meister with 32% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 16% and 2.9%, of the shares outstanding, respectively.
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 50% stake.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of RATIONAL
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in RATIONAL Aktiengesellschaft. It has a market capitalization of just €8.5b, and insiders have €1.3b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 32% stake in RATIONAL. 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.
Private Company Ownership
We can see that Private Companies own 32%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand RATIONAL better, we need to consider many other factors. Take risks for example - RATIONAL has 1 warning sign we think you should be aware of.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
