What types of shareholders hold the majority of Multitude SE (ETR: FRU) shares?
The large shareholder groups of Multitude SE (ETR: FRU) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
Multitude is not a large company by global standards. It has a market cap of 93 million euros, which means it wouldn’t have the attention of many institutional investors. In the graph below, we can see that institutional investors have bought into the company. Let’s dig deeper into each type of owner, to find out more about Multitude.
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What does institutional ownership tell us about the multitude?
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 businesses to have some institutions listed, especially if they are growing.
We can see that Multitude has institutional investors; and they own a good portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Multitude’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Multitude does not belong to hedge funds. With a 29% stake, CEO Jorma Jokela is the largest shareholder. For context, the second largest shareholder owns around 27% of the outstanding shares, followed by a 10% stake by the third largest shareholder.
To make our study more interesting, we found that the top 2 shareholders have a controlling stake in the company, which means that they are powerful enough to influence the decisions of the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider property of the multitude
The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders have a significant stake in Multitude SE. Insiders hold 29 million euros of shares in the company at 93 million euros. This may suggest that the founders still own a lot of stocks. You can click here to see if they bought or sold.
General public property
The general public, generally individuals, hold 17% of Multitude’s capital. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
With a 27% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Some might like this, as sometimes private capital is activists holding management to account. But other times, the private equity sells, after you have taken the company to the stock market.
While it is worth considering the different groups that own a business, there are other factors that are even more important. To this end, you need to know the 1 warning sign we spotted with Multitude.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.