What Is The Ownership Structure Like For CTS Eventim AG & Co. KGaA (ETR:EVD)?

By
Simply Wall St
Published
January 21, 2022
XTRA:EVD
Source: Shutterstock

Every investor in CTS Eventim AG & Co. KGaA (ETR:EVD) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

CTS Eventim KGaA is a pretty big company. It has a market capitalization of €6.4b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about CTS Eventim KGaA.

See our latest analysis for CTS Eventim KGaA

ownership-breakdown
XTRA:EVD Ownership Breakdown January 21st 2022

What Does The Institutional Ownership Tell Us About CTS Eventim KGaA?

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.

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. 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.

earnings-and-revenue-growth
XTRA:EVD Earnings and Revenue Growth January 21st 2022

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 5.2% of common stock, and Invesco Ltd. holds about 3.1% 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 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own a reasonable proportion of CTS Eventim AG & Co. KGaA. It has a market capitalization of just €6.4b, and insiders have €2.5b 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

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with CTS Eventim KGaA , and understanding them should be part of your investment process.

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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