Stock Analysis

Institutional investors have a lot riding on AutoWallis Nyilvánosan Muködo Részvénytársaság (BUSE:AUTOWALLIS) with 60% ownership

BUSE:AUTOWALLIS
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Key Insights

  • Given the large stake in the stock by institutions, AutoWallis Nyilvánosan Muködo Részvénytársaság's stock price might be vulnerable to their trading decisions
  • The largest shareholder of the company is Wallis Asset Management Zrt. with a 59% stake
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls AutoWallis Nyilvánosan Muködo Részvénytársaság (BUSE:AUTOWALLIS), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 60% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Last week’s 10% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 29% and last week's gain would have been more than welcomed.

In the chart below, we zoom in on the different ownership groups of AutoWallis Nyilvánosan Muködo Részvénytársaság.

See our latest analysis for AutoWallis Nyilvánosan Muködo Részvénytársaság

ownership-breakdown
BUSE:AUTOWALLIS Ownership Breakdown August 25th 2023

What Does The Institutional Ownership Tell Us About AutoWallis Nyilvánosan Muködo Részvénytársaság?

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 AutoWallis Nyilvánosan Muködo Részvénytársaság 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. 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 AutoWallis Nyilvánosan Muködo Részvénytársaság's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
BUSE:AUTOWALLIS Earnings and Revenue Growth August 25th 2023

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in AutoWallis Nyilvánosan Muködo Részvénytársaság. Wallis Asset Management Zrt. is currently the company's largest shareholder with 59% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 6.8% and 0.1% of the shares outstanding respectively, Széchenyi Alakop Zrt. and MKB-Pannónia Alapkezelo Zrt. are the second and third largest shareholders.

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 AutoWallis Nyilvánosan Muködo Részvénytársaság

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.

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 34% ownership, the general public, mostly comprising of individual investors, have some degree of sway over AutoWallis Nyilvánosan Muködo Részvénytársaság. 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 Equity Ownership

With a stake of 6.8%, private equity firms could influence the AutoWallis Nyilvánosan Muködo Részvénytársaság board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

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 example, we've discovered 2 warning signs for AutoWallis Nyilvánosan Muködo Részvénytársaság that you should be aware of before investing here.

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.

Valuation is complex, but we're helping make it simple.

Find out whether AutoWallis Nyilvánosan Muködo Részvénytársaság is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.