DWS Group GmbH & Co. KGaA (ETR:DWS) stock most popular amongst public companies who own 79%, while individual investors hold 11%

Key Insights

• DWS Group GmbH KGaA's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• 79% of the company is held by a single shareholder (Deutsche Bank Aktiengesellschaft)
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

Every investor in DWS Group GmbH & Co. KGaA (ETR:DWS) should be aware of the most powerful shareholder groups. With 79% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 11% ownership in the company.

Let's delve deeper into each type of owner of DWS Group GmbH KGaA, beginning with the chart below.

View our latest analysis for DWS Group GmbH KGaA

What Does The Institutional Ownership Tell Us About DWS Group GmbH KGaA?

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.

As you can see, institutional investors have a fair amount of stake in DWS Group GmbH KGaA. 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. 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 DWS Group GmbH KGaA's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in DWS Group GmbH KGaA. Looking at our data, we can see that the largest shareholder is Deutsche Bank Aktiengesellschaft with 79% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Nippon Life Insurance Company, Asset Management Arm is the second largest shareholder owning 5.0% of common stock, and The Vanguard Group, Inc. holds about 0.6% of the company stock.

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 DWS Group GmbH KGaA

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data cannot confirm that board members are 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, who are usually individual investors, hold a 11% stake in DWS Group GmbH KGaA. 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.

Public Company Ownership

Public companies currently own 79% of DWS Group GmbH KGaA stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

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 DWS Group GmbH KGaA that you should be aware of.

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.