Public companies among Sartorius Stedim Biotech S.A.'s (EPA:DIM) largest stockholders and were hit after last week's 3.2% price drop

Key Insights

• The considerable ownership by public companies in Sartorius Stedim Biotech indicates that they collectively have a greater say in management and business strategy
• Sartorius Aktiengesellschaft owns 70% of the company
• Institutional ownership in Sartorius Stedim Biotech is 11%

To get a sense of who is truly in control of Sartorius Stedim Biotech S.A. (EPA:DIM), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 70% to be precise, is public companies. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 3.2% decline in share price, public companies suffered the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Sartorius Stedim Biotech.

Check out our latest analysis for Sartorius Stedim Biotech

What Does The Institutional Ownership Tell Us About Sartorius Stedim Biotech?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Sartorius Stedim Biotech 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 Sartorius Stedim Biotech, (below). Of course, keep in mind that there are other factors to consider, too.

Sartorius Stedim Biotech is not owned by hedge funds. Sartorius Aktiengesellschaft is currently the company's largest shareholder with 70% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 1.2% of the shares outstanding, followed by an ownership of 1.2% by the third-largest shareholder.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Sartorius Stedim Biotech

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.

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 data suggests that insiders own under 1% of Sartorius Stedim Biotech S.A. in their own names. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own €5.8k worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 19% stake in Sartorius Stedim Biotech. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

It appears to us that public companies own 70% of Sartorius Stedim Biotech. 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. To that end, you should learn about the 5 warning signs we've spotted with Sartorius Stedim Biotech (including 1 which shouldn't be ignored) .

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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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.