The recent 3.1% gain must have brightened CEO Andreas F. Obereder's week, ATOSS Software AG's (ETR:AOF) most bullish insider

By
Simply Wall St
Published
November 18, 2021
XTRA:AOF
Source: Shutterstock

If you want to know who really controls ATOSS Software AG (ETR:AOF), then you'll have to look at the makeup of its share registry. We can see that individual insiders own the lion's share in the company with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders were the biggest beneficiaries of last week’s 3.1% gain.

In the chart below, we zoom in on the different ownership groups of ATOSS Software.

See our latest analysis for ATOSS Software

ownership-breakdown
XTRA:AOF Ownership Breakdown November 19th 2021

What Does The Institutional Ownership Tell Us About ATOSS Software?

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 ATOSS Software. 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 ATOSS Software, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
XTRA:AOF Earnings and Revenue Growth November 19th 2021

ATOSS Software is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Andreas F. Obereder with 50% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. For context, the second largest shareholder holds about 5.1% of the shares outstanding, followed by an ownership of 2.8% by the third-largest shareholder.

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 ATOSS Software

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 that insiders own more than half the ATOSS Software AG stock. This gives them a lot of power. That means insiders have a very meaningful €867m stake in this €1.7b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 25% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand ATOSS Software better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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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