Mensch und Maschine Software SE's (ETR:MUM) largest shareholder, CEO Adi Drotleff sees holdings value fall by 5.4% following recent drop

By
Simply Wall St
Published
January 17, 2022
XTRA:MUM
Source: Shutterstock

A look at the shareholders of Mensch und Maschine Software SE (ETR:MUM) can tell us which group is most powerful. The group holding the most number of shares in the company, around 45% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As market cap fell to €993m last week, insiders would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Mensch und Maschine Software, beginning with the chart below.

See our latest analysis for Mensch und Maschine Software

ownership-breakdown
XTRA:MUM Ownership Breakdown January 17th 2022

What Does The Institutional Ownership Tell Us About Mensch und Maschine 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.

Mensch und Maschine Software already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Mensch und Maschine Software's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
XTRA:MUM Earnings and Revenue Growth January 17th 2022

We note that hedge funds don't have a meaningful investment in Mensch und Maschine Software. The company's CEO Adi Drotleff is the largest shareholder with 45% of shares outstanding. The second and third largest shareholders are SEB Investment Management AB and Mainfirst Asset Management, with an equal amount of shares to their name at 2.6%.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Mensch und Maschine Software

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Mensch und Maschine Software SE. It is very interesting to see that insiders have a meaningful €451m stake in this €993m business. 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 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Mensch und Maschine Software. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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.

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.

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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