Insiders were the key beneficiaries as KWS SAAT SE & Co. KGaA's (ETR:KWS) market cap rises to €2.2b

Key Insights

• Insiders appear to have a vested interest in KWS SAAT SE KGaA's growth, as seen by their sizeable ownership
• 55% of the company is held by a single shareholder (Arend Oetker)
• Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls KWS SAAT SE & Co. KGaA (ETR:KWS), then you'll have to look at the makeup of its share registry. With 55% stake, individual insiders 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).

As a result, insiders scored the highest last week as the company hit €2.2b market cap following a 3.6% gain in the stock.

Let's delve deeper into each type of owner of KWS SAAT SE KGaA, beginning with the chart below.

View our latest analysis for KWS SAAT SE KGaA

What Does The Institutional Ownership Tell Us About KWS SAAT SE KGaA?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that KWS SAAT SE 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 KWS SAAT SE KGaA's historic earnings and revenue below, but keep in mind there's always more to the story.

KWS SAAT SE KGaA is not owned by hedge funds. The company's largest shareholder is Arend Oetker, with ownership of 55%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 15% and 1.1% of the shares outstanding respectively, Tessner Beteiligungs GmbH and The Vanguard Group, Inc. are the second and third largest shareholders.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of KWS SAAT SE KGaA

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. 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.

Our information suggests that insiders own more than half of KWS SAAT SE & Co. KGaA. This gives them effective control of the company. That means insiders have a very meaningful €1.2b stake in this €2.2b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public, who are usually individual investors, hold a 23% stake in KWS SAAT SE KGaA. 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

Our data indicates that Private Companies hold 15%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 KWS SAAT SE 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.