Yahoo Finance Public companies among HOCHTIEF Aktiengesellschaft's (ETR:HOT) largest stockholders and were hit after last week's 4.2% price drop
Key Insights
The considerable ownership by public companies in HOCHTIEF indicates that they collectively have a greater say in management and business strategy
ACS, Actividades de Construcción y Servicios, S.A. owns 76% of the company
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
Every investor in HOCHTIEF Aktiengesellschaft (ETR:HOT) should be aware of the most powerful shareholder groups. With 76% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And following last week's 4.2% decline in share price, public companies suffered the most losses.
Let's delve deeper into each type of owner of HOCHTIEF, beginning with the chart below.
View our latest analysis for HOCHTIEF
What Does The Institutional Ownership Tell Us About HOCHTIEF?
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.
HOCHTIEF already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 HOCHTIEF, (below). Of course, keep in mind that there are other factors to consider, too.
HOCHTIEF is not owned by hedge funds. Our data shows that ACS, Actividades de Construcción y Servicios, S.A. is the largest shareholder with 76% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 1.1% of the shares outstanding, followed by an ownership of 0.9% by the third-largest shareholder.
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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of HOCHTIEF
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.
General Public Ownership
With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over HOCHTIEF. 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.
Public Company Ownership
It appears to us that public companies own 76% of HOCHTIEF. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
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. For instance, we've identified 1 warning sign for HOCHTIEF that you should be aware of.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
