Painful week for retail investors invested in NÜRNBERGER Beteiligungs-AG (ETR:NBG6) after 8.9% drop, institutions also suffered losses

Key Insights

• Significant control over NÜRNBERGER Beteiligungs-AG by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 3 investors have a majority stake in the company with 53% ownership
• Institutional ownership in NÜRNBERGER Beteiligungs-AG is 31%

A look at the shareholders of NÜRNBERGER Beteiligungs-AG (ETR:NBG6) can tell us which group is most powerful. The group holding the most number of shares in the company, around 32% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 8.9% decrease in the stock price last week, retail investors suffered the most losses, but institutions who own 31% stock also took a hit.

Let's delve deeper into each type of owner of NÜRNBERGER Beteiligungs-AG, beginning with the chart below.

Check out our latest analysis for NÜRNBERGER Beteiligungs-AG

What Does The Institutional Ownership Tell Us About NÜRNBERGER Beteiligungs-AG?

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.

NÜRNBERGER Beteiligungs-AG already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 NÜRNBERGER Beteiligungs-AG'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 NÜRNBERGER Beteiligungs-AG. Our data shows that Neue SEBA Beteiligungsgesellschaft mbH is the largest shareholder with 21% of shares outstanding. The second and third largest shareholders are Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München and Versicherungskammer Bayern Versicherungsanstalt Des öffentlichen Rechts, Asset Management Arm, with an equal amount of shares to their name at 16%.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 53% stake.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of NÜRNBERGER Beteiligungs-AG

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data cannot confirm that board members are 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 32% stake in NÜRNBERGER Beteiligungs-AG. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 21%, of the NÜRNBERGER Beteiligungs-AG stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

Public companies currently own 16% of NÜRNBERGER Beteiligungs-AG 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for NÜRNBERGER Beteiligungs-AG you should be aware of, and 1 of them shouldn't be ignored.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.