Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München's (ETR:MUV2) 3.1% loss last week hit both individual investors who own 55% as well as institutions

Key Insights

• Münchener Rückversicherungs-Gesellschaft in München's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 35% of the business is held by the top 25 shareholders
• Institutions own 45% of Münchener Rückversicherungs-Gesellschaft in München

Every investor in Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (ETR:MUV2) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 55% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While the holdings of retail investors took a hit after last week’s 3.1% price drop, institutions with their 45% holdings also suffered.

In the chart below, we zoom in on the different ownership groups of Münchener Rückversicherungs-Gesellschaft in München.

See our latest analysis for Münchener Rückversicherungs-Gesellschaft in München

What Does The Institutional Ownership Tell Us About Münchener Rückversicherungs-Gesellschaft in München?

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 have a fair amount of stake in Münchener Rückversicherungs-Gesellschaft in München. 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 Münchener Rückversicherungs-Gesellschaft in München's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Münchener Rückversicherungs-Gesellschaft in München. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 7.1% of shares outstanding. For context, the second largest shareholder holds about 4.0% of the shares outstanding, followed by an ownership of 3.0% by the third-largest shareholder.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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

Insider Ownership Of Münchener Rückversicherungs-Gesellschaft in München

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

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 -- including retail investors -- own 55% of Münchener Rückversicherungs-Gesellschaft in München. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Münchener Rückversicherungs-Gesellschaft in München .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com