- Auto Components
Vitesco Technologies Group Aktiengesellschaft's (ETR:VTSC) market cap dropped €130m last week; individual investors who hold 51% were hit as were institutions
- Significant control over Vitesco Technologies Group by private companies implies that the general public has more power to influence management and governance-related decisions
- A total of 2 investors have a majority stake in the company with 51% ownership
- Institutional ownership in Vitesco Technologies Group is 32%
To get a sense of who is truly in control of Vitesco Technologies Group Aktiengesellschaft (ETR:VTSC), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 51% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 5.2% decrease in the stock price last week, private companies suffered the most losses, but institutions who own 32% stock also took a hit.
In the chart below, we zoom in on the different ownership groups of Vitesco Technologies Group.
See our latest analysis for Vitesco Technologies Group
What Does The Institutional Ownership Tell Us About Vitesco Technologies Group?
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 Vitesco Technologies Group 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. 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 Vitesco Technologies Group, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Vitesco Technologies Group. Our data shows that INA-Holding Schaeffler GmbH & Co. KG is the largest shareholder with 46% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.0% and 4.8% of the stock.
To make our study more interesting, we found that the top 2 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 Vitesco Technologies Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.
General Public Ownership
The general public-- including retail investors -- own 17% 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.
Private Company Ownership
It seems that Private Companies own 51%, of the Vitesco Technologies Group stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Vitesco Technologies Group that you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.
Valuation is complex, but we're helping make it simple.
Find out whether Vitesco Technologies Group 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.View the Free Analysis
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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.
Vitesco Technologies Group
Vitesco Technologies Group Aktiengesellschaft engages in the development and production of components and system solutions for drivetrains in hybrid vehicles, electric vehicles, and combustion engines worldwide.
Excellent balance sheet and good value.