Could The capsensixx AG (ETR:CPX) Ownership Structure Tell Us Something Useful?

Every investor in capsensixx AG (ETR:CPX) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

capsensixx is a smaller company with a market capitalization of €25m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about capsensixx.

See our latest analysis for capsensixx

XTRA:CPX Ownership Summary, January 16th 2020
XTRA:CPX Ownership Summary, January 16th 2020

What Does The Institutional Ownership Tell Us About capsensixx?

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 own 79% of capsensixx. 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 capsensixx, (below). Of course, keep in mind that there are other factors to consider, too.

XTRA:CPX Income Statement, January 16th 2020
XTRA:CPX Income Statement, January 16th 2020

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don’t have many shares in capsensixx. The company’s largest shareholder is PEH Wertpapier AG, with ownership of 78%, This implies that they have majority interest control of the future of the company. The second and third largest shareholders are Rudolf Locker and E&L Portfolio Management AG, holding 2.4% and 0.9%, respectively.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of capsensixx

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

I can report that insiders do own shares in capsensixx AG. In their own names, insiders own €603k worth of stock in the €25m company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, with a 19% stake in the company, will not 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 capsensixx better, we need to consider many other factors. Case in point: We’ve spotted 2 warning signs for capsensixx 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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