DIC Asset AG's (ETR:DIC) 10% loss last week hit both individual investors who own 35% as well as institutions

By
Simply Wall St
Published
May 11, 2022
XTRA:DIC
Source: Shutterstock

If you want to know who really controls DIC Asset AG (ETR:DIC), then you'll have to look at the makeup of its share registry. With 35% stake, private companies 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 10% decrease in the stock price last week, private companies suffered the most losses, but institutions who own 29% stock also took a hit.

Let's delve deeper into each type of owner of DIC Asset, beginning with the chart below.

See our latest analysis for DIC Asset

ownership-breakdown
XTRA:DIC Ownership Breakdown May 11th 2022

What Does The Institutional Ownership Tell Us About DIC Asset?

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 DIC Asset does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see DIC Asset's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
XTRA:DIC Earnings and Revenue Growth May 11th 2022

We note that hedge funds don't have a meaningful investment in DIC Asset. The company's largest shareholder is Deutsche Immobilien Chancen AG & Co. KGaA, with ownership of 27%. The second and third largest shareholders are Yannick Heller and RAG Foundation, Endowment Arm, with an equal amount of shares to their name at 10%.

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.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 DIC Asset

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in DIC Asset AG. It has a market capitalization of just €966m, and insiders have €98m worth of shares in their own names. That's quite significant. 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

The general public-- including retail investors -- own 26% stake in the company, and hence can't easily be ignored. 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 35%, 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 4 warning signs for DIC Asset (2 are a bit unpleasant) 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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