Yahoo Finance Private companies account for 38% of HORNBACH Holding AG & Co. KGaA's (ETR:HBH) ownership, while individual investors account for 27%
Key Insights
HORNBACH Holding KGaA's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
The top 4 shareholders own 56% of the company
If you want to know who really controls HORNBACH Holding AG & Co. KGaA ( ETR:HBH ), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 38% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Individual investors, on the other hand, account for 27% of the company's stockholders.
Let's delve deeper into each type of owner of HORNBACH Holding KGaA, beginning with the chart below.
View our latest analysis for HORNBACH Holding KGaA
What Does The Institutional Ownership Tell Us About HORNBACH Holding KGaA?
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 companies to have some institutions on the register, especially if they are growing.
We can see that HORNBACH Holding KGaA 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. 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 HORNBACH Holding KGaA's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in HORNBACH Holding KGaA. Hornbach Familientreuhand GmbH is currently the company's largest shareholder with 37.5% of shares outstanding. For context, the second largest shareholder holds about 12.7% of the shares outstanding, followed by an ownership of 6.56% by the third-largest shareholder. Furthermore, CEO Albrecht Hornbach is the owner of 0.7% of the company's shares.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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 HORNBACH Holding KGaA
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 information suggests that insiders maintain a significant holding in HORNBACH Holding AG & Co. KGaA. It is very interesting to see that insiders have a meaningful €151m stake in this €1.1b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
General Public Ownership
The general public, who are usually individual investors, hold a 27% stake in HORNBACH Holding KGaA. 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
Our data indicates that Private Companies hold 38%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
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 2 warning signs for HORNBACH Holding KGaA you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts .
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.
