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

Key Insights

• Insiders appear to have a vested interest in CTS Eventim KGaA's growth, as seen by their sizeable ownership
• 51% of the business is held by the top 4 shareholders
• 38% of CTS Eventim KGaA is held by Institutions

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Every investor in CTS Eventim AG & Co. KGaA (ETR:EVD) should be aware of the most powerful shareholder groups. With 42% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

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?

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.

As you can see, institutional investors have a fair amount of stake in CTS Eventim KGaA. 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 CTS Eventim KGaA's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in CTS Eventim KGaA. With a 39% stake, CEO Klaus-Peter Schulenberg is the largest shareholder. BlackRock, Inc. is the second largest shareholder owning 6.3% of common stock, and George Loening holds about 2.9% of the company stock.

To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 CTS Eventim KGaA

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

It seems insiders own a significant proportion of CTS Eventim AG & Co. KGaA. It has a market capitalization of just €10.0b, and insiders have €4.2b worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in CTS Eventim KGaA. 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 CTS Eventim KGaA better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for CTS Eventim KGaA you should know about.

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.