Yahoo Finance Owning 52% in DFV Deutsche Familienversicherung AG (ETR:DFV) means that insiders are heavily invested in the company's future
Key Insights
DFV Deutsche Familienversicherung's significant insider ownership suggests inherent interests in company's expansion
The top 3 shareholders own 57% of the company
34% of DFV Deutsche Familienversicherung is held by Institutions
To get a sense of who is truly in control of DFV Deutsche Familienversicherung AG (ETR:DFV), it is important to understand the ownership structure of the business. With 52% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.
In the chart below, we zoom in on the different ownership groups of DFV Deutsche Familienversicherung.
View our latest analysis for DFV Deutsche Familienversicherung
What Does The Institutional Ownership Tell Us About DFV Deutsche Familienversicherung?
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.
As you can see, institutional investors have a fair amount of stake in DFV Deutsche Familienversicherung. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at DFV Deutsche Familienversicherung's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in DFV Deutsche Familienversicherung. Luca Pesarini is currently the company's largest shareholder with 23% of shares outstanding. In comparison, the second and third largest shareholders hold about 20% and 14% of the stock. Stefan Knoll, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of DFV Deutsche Familienversicherung
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.
It seems that insiders own more than half the DFV Deutsche Familienversicherung AG stock. This gives them a lot of power. So they have a €54m stake in this €104m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 14% stake in DFV Deutsche Familienversicherung. 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.
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.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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.
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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.
