Yahoo Finance With 47% ownership, Mensch und Maschine Software SE (ETR:MUM) insiders have a lot at stake
Key Insights
Mensch und Maschine Software's significant insider ownership suggests inherent interests in company's expansion
The top 3 shareholders own 51% of the company
Every investor in Mensch und Maschine Software SE (ETR:MUM) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 47% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
So it follows, every decision made by insiders of Mensch und Maschine Software regarding the company's future would be crucial to them.
In the chart below, we zoom in on the different ownership groups of Mensch und Maschine Software.
Check out our latest analysis for Mensch und Maschine Software
What Does The Institutional Ownership Tell Us About Mensch und Maschine Software?
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.
Mensch und Maschine Software 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 Mensch und Maschine Software, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Mensch und Maschine Software. From our data, we infer that the largest shareholder is Adi Drotleff (who also holds the title of Chairman of Management Board) with 47% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. SEB Investment Management AB is the second largest shareholder owning 2.0% of common stock, and Danske Bank A/S, Asset Management Arm holds about 1.4% of the company stock.
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.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Mensch und Maschine Software
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.
It seems insiders own a significant proportion of Mensch und Maschine Software SE. It has a market capitalization of just €949m, and insiders have €449m worth of shares in their own names. That's quite significant. 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 36% stake in Mensch und Maschine Software. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Mensch und Maschine Software better, we need to consider many other factors. For example, we've discovered 1 warning sign for Mensch und Maschine Software that you should be aware of before investing here.
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.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
