With 51% ownership of the shares, MTU Aero Engines AG (ETR:MTX) is heavily dominated by institutional owners




  • In Business
  • 2022-12-30 06:05:14Z
  • By Simply Wall St.
 

To get a sense of who is truly in control of MTU Aero Engines AG (ETR:MTX), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 51% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.

Let's delve deeper into each type of owner of MTU Aero Engines, beginning with the chart below.

See our latest analysis for MTU Aero Engines

What Does The Institutional Ownership Tell Us About MTU Aero Engines?

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 MTU Aero Engines does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of MTU Aero Engines, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in MTU Aero Engines. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 8.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.4% and 3.7% of the stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 MTU Aero Engines

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Shareholders would probably be interested to learn that insiders own shares in MTU Aero Engines AG. The insiders have a meaningful stake worth €308m. 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 46% stake in MTU Aero Engines. 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.

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. Case in point: We've spotted 1 warning sign for MTU Aero Engines you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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

With 45% ownership, ikeGPS Group Limited (NZSE:IKE) insiders have a lot at stake
With 45% ownership, ikeGPS Group Limited (NZSE:IKE) insiders have a lot at stake

Every investor in ikeGPS Group Limited ( NZSE:IKE ) should be aware of the most powerful shareholder groups. And the...

Owning 61% in AYER Holdings Berhad (KLSE:AYER) means that insiders are heavily invested in the company
Owning 61% in AYER Holdings Berhad (KLSE:AYER) means that insiders are heavily invested in the company's future

To get a sense of who is truly in control of AYER Holdings Berhad ( KLSE:AYER ), it is important to understand the...

While insiders own 24% of Northern Minerals Limited (ASX:NTU), individual investors are its largest shareholders with 48% ownership
While insiders own 24% of Northern Minerals Limited (ASX:NTU), individual investors are its largest shareholders with 48% ownership

Every investor in Northern Minerals Limited ( ASX:NTU ) should be aware of the most powerful shareholder groups. The...

LBG Media plc (LON:LBG) insiders placed bullish bets worth UK£519k in the last 12 months
LBG Media plc (LON:LBG) insiders placed bullish bets worth UK£519k in the last 12 months

Multiple insiders secured a larger position in LBG Media plc ( LON:LBG ) shares over the last 12 months. This is...

With a 70% stake, LGMS Berhad (KLSE:LGMS) insiders have a lot riding on the company
With a 70% stake, LGMS Berhad (KLSE:LGMS) insiders have a lot riding on the company

If you want to know who really controls LGMS Berhad ( KLSE:LGMS ), then you'll have to look at the makeup of its share...

Leave a Comment

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

Cancel reply

Comments

  • Aqib Garden Lahore
    (2022-12-30 11:19:48Z)

    Property for sale Aqib Garden Lahore known as Aqib Garden Housing Plan Lahore is clearly arranged on Principal Raiwind Road Lahore. It is found close to other lofty confidential social orders like Al Kabir Town Lahore, Bahria Estate Lahore, Lake City, etc. Adda Plot is arranged at just 11 minutes' drive away from Aqib Garden Housing Plan. Fazaia Trade on Lahore Ring Road is just 18 minutes' drive away from here. You can without a doubt get to this overall population from any piece of Lahore through Lahore Ring Road.

    REPLY
  • subway
    (2022-12-31 00:28:07Z)

    institutional ownership stabilize the stock prize because they cant sell and buy fast unlike individuals .

    REPLY
  • win
    (2022-12-31 00:30:29Z)

    I agree , but when they sell you get to watch out or you could get wiped out .

    REPLY
  • win
    (2022-12-31 00:31:27Z)

    I agree , but when they sell you get to watch out or you could get wiped out .

    REPLY
  • dervy
    (2023-01-18 05:52:47Z)

    Muchas gracias por este maravilloso escrito. Me interesan mucho tus publicaciones y me ayudan mucho. Sigue haciendo el gran trabajo. Seguro que siempre estaré pendiente de tus trabajos, gracias.

    REPLY
  • qrkmhce
    (2023-01-26 12:03:04Z)

    https://prednisone4all-365.top/

    REPLY

Top News: Business