Individual investors own 12% of DWS Group GmbH & Co. KGaA (ETR:DWS) shares but public companies control 79% of the company

Key Insights

• Significant control over DWS Group GmbH KGaA by public companies implies that the general public has more power to influence management and governance-related decisions
• Deutsche Bank Aktiengesellschaft owns 79% of the company
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

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If you want to know who really controls DWS Group GmbH & Co. KGaA (ETR:DWS), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 79% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 12% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about DWS Group GmbH KGaA.

View our latest analysis for DWS Group GmbH KGaA

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

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.

We can see that DWS Group GmbH KGaA does have institutional investors; and they hold a good portion of the company's stock. 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 DWS Group GmbH KGaA's historic earnings and revenue below, but keep in mind there's always more to the story.

DWS Group GmbH KGaA is not owned by hedge funds. Our data shows that Deutsche Bank Aktiengesellschaft is the largest shareholder with 79% of shares outstanding. This implies that they have majority interest control of the future of the company. With 5.0% and 0.7% of the shares outstanding respectively, Nippon Life Insurance Company and The Vanguard Group, Inc. are the second and third largest shareholders.

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 DWS Group GmbH KGaA

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We note our data does not show any board members 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, who are usually individual investors, hold a 12% 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. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.

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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.