thyssenkrupp AG (ETR:TKA) surges 8.5%; individual investors who own 48% shares profited along with institutions

Key Insights

• Significant control over thyssenkrupp by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 18 shareholders own 50% of the company
• 46% of thyssenkrupp is held by Institutions

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To get a sense of who is truly in control of thyssenkrupp AG (ETR:TKA), it is important to understand the ownership structure of the business. With 48% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 8.5% increase in the stock price last week, individual investors profited the most, but institutions who own 46% stock also stood to gain from the increase.

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

View our latest analysis for thyssenkrupp

What Does The Institutional Ownership Tell Us About thyssenkrupp?

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 thyssenkrupp 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of thyssenkrupp, (below). Of course, keep in mind that there are other factors to consider, too.

thyssenkrupp is not owned by hedge funds. Alfried Krupp Von Bohlen Und Halbach Stiftung, Endowment Arm is currently the company's largest shareholder with 21% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 5.1% of common stock, and Norges Bank Investment Management holds about 3.2% of the company stock.

A closer look at our ownership figures suggests that the top 18 shareholders have a combined ownership of 50% implying that no single shareholder has a majority.

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 thyssenkrupp

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

Our data suggests that insiders own under 1% of thyssenkrupp AG in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around €8.5m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 48% stake in thyssenkrupp. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand thyssenkrupp better, we need to consider many other factors. For instance, we've identified 1 warning sign for thyssenkrupp that you should be aware of.

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.