Yahoo Finance Nemetschek SE's (ETR:NEM) biggest owners are private companies who got richer after stock soared 4.2% last week
Key Insights
Significant control over Nemetschek by private companies implies that the general public has more power to influence management and governance-related decisions
The top 4 shareholders own 51% of the company
To get a sense of who is truly in control of Nemetschek SE (ETR:NEM), it is important to understand the ownership structure of the business. With 39% stake, private companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, private companies were the biggest beneficiaries of last week’s 4.2% gain.
Let's take a closer look to see what the different types of shareholders can tell us about Nemetschek.
Check out our latest analysis for Nemetschek
What Does The Institutional Ownership Tell Us About Nemetschek?
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.
As you can see, institutional investors have a fair amount of stake in Nemetschek. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Nemetschek, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Nemetschek. Pro. Georg Nemetschek Foundation is currently the company's largest shareholder with 39% of shares outstanding. With 5.4% and 4.0% of the shares outstanding respectively, Ralf Nemetschek and Nemetschek Foundation, Endowment Arm are the second and third largest shareholders.
Our research also brought to light the fact that roughly 51% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Nemetschek
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
We can report that insiders do own shares in Nemetschek SE. The insiders have a meaningful stake worth €853m. Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, who are usually individual investors, hold a 25% stake in Nemetschek. 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
It seems that Private Companies own 39%, of the Nemetschek stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important.
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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
