Public companies among Sartorius Stedim Biotech S.A.'s (EPA:DIM) largest shareholders, saw gain in holdings value after stock jumped 3.8% last week

Key Insights

• Significant control over Sartorius Stedim Biotech by public companies implies that the general public has more power to influence management and governance-related decisions
• 70% of the company is held by a single shareholder (Sartorius Aktiengesellschaft)
• Institutional ownership in Sartorius Stedim Biotech is 13%

Every investor in Sartorius Stedim Biotech S.A. (EPA:DIM) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 70% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, public companies collectively scored the highest last week as the company hit €18b market cap following a 3.8% gain in the stock.

In the chart below, we zoom in on the different ownership groups of 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 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. 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 Sartorius Stedim Biotech's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Sartorius Stedim Biotech. Our data shows that Sartorius Aktiengesellschaft is the largest shareholder with 70% of shares outstanding. This implies that they have majority interest control of the future of the company. The second and third largest shareholders are BlackRock, Inc. and Comgest S.A., with an equal amount of shares to their name at 1.2%.

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 Sartorius Stedim Biotech

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.

Our most recent data indicates that insiders own less than 1% of Sartorius Stedim Biotech S.A.. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own €6.1k worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 17% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sartorius Stedim Biotech. 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.

Public Company Ownership

We can see that public companies hold 70% of the Sartorius Stedim Biotech shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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 Sartorius Stedim Biotech (1 is potentially serious) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.