CTS Eventim AG & Co. KGaA (ETR:EVD) insiders have significant skin in the game with 42% ownership

Key Insights

• CTS Eventim KGaA's significant insider ownership suggests inherent interests in company's expansion
• The top 5 shareholders own 53% of the company
• Institutional ownership in CTS Eventim KGaA is 41%

To get a sense of who is truly in control of CTS Eventim AG & Co. KGaA (ETR:EVD), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 42% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

So it follows, every decision made by insiders of CTS Eventim KGaA regarding the company's future would be crucial to them.

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

View our latest analysis for CTS Eventim KGaA

What Does The Institutional Ownership Tell Us About CTS Eventim 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.

CTS Eventim KGaA already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 CTS Eventim KGaA, (below). Of course, keep in mind that there are other factors to consider, too.

CTS Eventim KGaA is not owned by hedge funds. The company's CEO Klaus-Peter Schulenberg is the largest shareholder with 39% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.0% and 3.0%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. 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 CTS Eventim KGaA

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.

Our most recent data indicates that insiders own a reasonable proportion of CTS Eventim AG & Co. KGaA. It is very interesting to see that insiders have a meaningful €3.5b stake in this €8.4b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over CTS Eventim KGaA. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CTS Eventim KGaA better, we need to consider many other factors. For example, we've discovered 1 warning sign for CTS Eventim KGaA that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.