Institutional investors are JOST Werke AG's (ETR:JST) biggest bettors and were rewarded after last week's €63m market cap gain




  • In Business
  • 2022-12-05 06:21:00Z
  • By Simply Wall St.
 

If you want to know who really controls JOST Werke AG (ETR:JST), then you'll have to look at the makeup of its share registry. With 68% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Last week's 8.3% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 23%.

Let's take a closer look to see what the different types of shareholders can tell us about JOST Werke.

See our latest analysis for JOST Werke

What Does The Institutional Ownership Tell Us About JOST Werke?

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 JOST Werke. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 JOST Werke's historic earnings and revenue below, but keep in mind there's always more to the story.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in JOST Werke. 34. Pmb Management Gmbh is currently the largest shareholder, with 15% of shares outstanding. Allianz SE, Insurance Investments is the second largest shareholder owning 11% of common stock, and Allianz Asset Management AG holds about 8.7% of the company stock.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of JOST Werke

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 17% stake in JOST Werke. 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.

Private Company Ownership

We can see that Private Companies own 15%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. To that end, you should learn about the 3 warning signs we've spotted with JOST Werke (including 1 which is potentially serious) .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

The past year for Oxford Biomedica (LON:OXB) investors has not been profitable
The past year for Oxford Biomedica (LON:OXB) investors has not been profitable

Oxford Biomedica plc ( LON:OXB ) shareholders should be happy to see the share price up 26% in the last quarter. But...

Formosa Prosonic Industries Berhad (KLSE:FPI) stock most popular amongst individual investors who own 42%, while public companies hold 29%
Formosa Prosonic Industries Berhad (KLSE:FPI) stock most popular amongst individual investors who own 42%, while public companies hold 29%

Every investor in Formosa Prosonic Industries Berhad ( KLSE:FPI ) should be aware of the most powerful shareholder...

While insiders own 20% of Tamboran Resources Limited (ASX:TBN), individual investors are its largest shareholders with 24% ownership
While insiders own 20% of Tamboran Resources Limited (ASX:TBN), individual investors are its largest shareholders with 24% ownership

If you want to know who really controls Tamboran Resources Limited ( ASX:TBN ), then you'll have to look at the makeup...

While institutions own 28% of Emerald Resources NL (ASX:EMR), individual investors are its largest shareholders with 51% ownership
While institutions own 28% of Emerald Resources NL (ASX:EMR), individual investors are its largest shareholders with 51% ownership

Every investor in Emerald Resources NL ( ASX:EMR ) should be aware of the most powerful shareholder groups. With 51...

Adani
Adani's $2.5 billion share sale faces crucial day after Indian rout
  • US
  • 2023-01-29 16:06:30Z

NEW DELHI (Reuters) -Gautam Adani faces a critical day on Monday with his flagship company's $2.5 billion share sale's second day of bidding overshadowed by ...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business