Siemens Healthineers AG's (ETR:SHL) biggest owners are public companies who got richer after stock soared 12% last week

Key Insights

• The considerable ownership by public companies in Siemens Healthineers indicates that they collectively have a greater say in management and business strategy
• 76% of the company is held by a single shareholder (Siemens Aktiengesellschaft)
• Institutions own 12% of Siemens Healthineers

Every investor in Siemens Healthineers AG (ETR:SHL) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 76% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies were the biggest beneficiaries of last week’s 12% gain.

In the chart below, we zoom in on the different ownership groups of Siemens Healthineers.

Check out our latest analysis for Siemens Healthineers

What Does The Institutional Ownership Tell Us About Siemens Healthineers?

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 Siemens Healthineers 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Siemens Healthineers' earnings history below. Of course, the future is what really matters.

Siemens Healthineers is not owned by hedge funds. Siemens Aktiengesellschaft is currently the company's largest shareholder with 76% of shares outstanding. This implies that they have majority interest control of the future of the company. Capital Research and Management Company is the second largest shareholder owning 3.0% of common stock, and BlackRock, Inc. holds about 1.0% 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 Siemens Healthineers

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.

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 data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public, who are usually individual investors, hold a 12% stake in Siemens Healthineers. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 76% of the Siemens Healthineers shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Siemens Healthineers better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Siemens Healthineers (of which 1 can't be ignored!) you should know about.

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.