Stock Analysis

With 63% institutional ownership, Wienerberger AG (VIE:WIE) is a favorite amongst the big guns

  •  Updated
WBAG:WIE
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Every investor in Wienerberger AG (VIE:WIE) should be aware of the most powerful shareholder groups. With 63% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

In the chart below, we zoom in on the different ownership groups of Wienerberger.

Before we look at the ownership breakdown, you might like to know that our analysis indicates that WIE is potentially undervalued!

ownership-breakdown
WBAG:WIE Ownership Breakdown October 3rd 2022

What Does The Institutional Ownership Tell Us About Wienerberger?

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 Wienerberger. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Wienerberger's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
WBAG:WIE Earnings and Revenue Growth October 3rd 2022

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Wienerberger is not owned by hedge funds. The company's largest shareholder is FMR LLC, with ownership of 5.8%. For context, the second largest shareholder holds about 5.7% of the shares outstanding, followed by an ownership of 4.6% by the third-largest shareholder.

A closer look at our ownership figures suggests that the top 19 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 Wienerberger

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. 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.

Our data cannot confirm that board members are 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

The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Wienerberger better, we need to consider many other factors. Be aware that Wienerberger is showing 3 warning signs in our investment analysis , and 1 of those is a bit concerning...

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.

Valuation is complex, but we're helping make it simple.

Find out whether Wienerberger is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About WBAG:WIE

Wienerberger

Wienerberger AG produces and sells bricks, roof tiles, concrete pavers, and pipe systems in Europe.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation6
Future Growth1
Past Performance6
Financial Health4
Dividends5

Read more about these checks in the individual report sections or in our analysis model.

Very undervalued with outstanding track record and pays a dividend.