While institutions invested in AUTO1 Group SE (ETR:AG1) benefited from last week’s 13% gain, individual investors benefited the most
Every investor in AUTO1 Group SE (ETR:AG1) should know the most powerful shareholder groups. We can see that individual investors hold the lion’s share of the company with 41% ownership. That is, the group will benefit the most if the stock goes up (or loses the most if there is a downturn).
Individual investors gained the most after market capitalization hit 2.5 billion euros last week, while institutions that hold 34% also benefited.
Let’s take a closer look at what the different types of shareholders can tell us about the AUTO1 Group.
Check out our latest analysis for AUTO1 Group
What does institutional ownership tell us about the AUTO1 group?
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.
We can see that the AUTO1 group has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out the AUTO1 Group’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
AUTO1 Group is not owned by hedge funds. Our data shows that SoftBank Investment Advisers (UK) Limited is the largest shareholder with 17% of shares outstanding. With 8.4% and 5.7% of outstanding shares, respectively, Despoina Zinonos and Morgan Stanley, Investment Banking and Brokerage Investments are the second and third largest shareholders.
Upon closer inspection, we found that more than half of the company’s shares are held by the top 9 shareholders, suggesting that the interests of the larger shareholders are to some extent balanced by those of the smaller ones.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
AUTO1 Group Insider Ownership
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
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.
We can see that insiders hold shares in AUTO1 Group SE. Insiders have a significant stake worth €206 million. Most would see this as a real positive. Most would say this shows the alignment of interests between shareholders and the board. Still, it might be worth checking to see if these insiders have sold.
General public property
With a 41% stake, the general public, consisting mainly of individual investors, has some influence on the AUTO1 group. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private equity ownership
With a 17% stake, private equity firms are able to play a role in shaping corporate strategy with a focus on value creation. This might appeal to some, because private equity is sometimes an activist who holds management accountable. But other times, the private equity sells off, after taking the company public.
It is always useful to think about the different groups that own shares in a company. But to better understand the AUTO1 Group, we must consider many other factors. Take risks for example – AUTO1 Group has 2 warning signs we think you should know.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.