Private companies in Basler Aktiengesellschaft (ETR:BSL) are its biggest bettors, and their bets paid off as stock gained 13% last week

By
Simply Wall St
Published
March 15, 2022
XTRA:BSL
Source: Shutterstock

A look at the shareholders of Basler Aktiengesellschaft (ETR:BSL) can tell us which group is most powerful. The group holding the most number of shares in the company, around 55% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, private companies collectively scored the highest last week as the company hit €1.1b market cap following a 13% gain in the stock.

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

View our latest analysis for Basler

ownership-breakdown
XTRA:BSL Ownership Breakdown March 15th 2022

What Does The Institutional Ownership Tell Us About Basler?

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

earnings-and-revenue-growth
XTRA:BSL Earnings and Revenue Growth March 15th 2022

Basler is not owned by hedge funds. Our data shows that Basler Beteiligungs-Gmbh & Co. Kg is the largest shareholder with 55% of shares outstanding. This implies that they have majority interest control of the future of the company. Invesco Ltd. is the second largest shareholder owning 6.3% of common stock, and 7 - Industries Holding B.V. holds about 5.3% of the company stock. Furthermore, CEO Dietmar Ley is the owner of 3.8% of the company's shares.

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 Basler

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

We can report that insiders do own shares in Basler Aktiengesellschaft. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around €43m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 20% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 55%, of the Basler stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 1 warning sign for Basler 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.