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- XTRA:AT1
Aroundtown SA's (ETR:AT1) biggest owners are retail investors who got richer after stock soared 3.4% last week
Key Insights
- Aroundtown's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- The top 4 shareholders own 52% of the company
- Insider ownership in Aroundtown is 14%
To get a sense of who is truly in control of Aroundtown SA (ETR:AT1), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 30% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Clearly, retail investors benefitted the most after the company's market cap rose by €73m last week.
In the chart below, we zoom in on the different ownership groups of Aroundtown.
View our latest analysis for Aroundtown
What Does The Institutional Ownership Tell Us About Aroundtown?
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.
As you can see, institutional investors have a fair amount of stake in Aroundtown. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Aroundtown's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Aroundtown. TLG Immobilien AG is currently the company's largest shareholder with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 14% and 14%, of the shares outstanding, respectively.
Our research also brought to light the fact that roughly 52% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.
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 Aroundtown
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 information suggests that insiders maintain a significant holding in Aroundtown SA. It has a market capitalization of just €2.2b, and insiders have €316m worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 30% stake in Aroundtown. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
We can see that Private Companies own 21%, of the shares on issue. 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
It appears to us that public companies own 17% of Aroundtown. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Aroundtown has 1 warning sign we think you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About XTRA:AT1
Aroundtown
Operates as a real estate company in Germany, the Netherlands, the United Kingdom, Belgium, and internationally.
Undervalued with moderate growth potential.