Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság's (BUSE:MTELEKOM) biggest owners are public companies who got richer after stock soared 6.6% last week

Key Insights

• The considerable ownership by public companies in Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság indicates that they collectively have a greater say in management and business strategy
• Deutsche Telekom AG owns 66% of the company
• Institutional ownership in Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság is 10%

Every investor in Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (BUSE:MTELEKOM) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 66% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, public companies were the biggest beneficiaries of last week’s 6.6% gain.

Let's take a closer look to see what the different types of shareholders can tell us about Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság.

Check out our latest analysis for Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság

What Does The Institutional Ownership Tell Us About Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság?

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 Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság's historic earnings and revenue below, but keep in mind there's always more to the story.

Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság is not owned by hedge funds. Deutsche Telekom AG is currently the largest shareholder, with 66% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 1.4% and 1.2%, of the shares outstanding, respectively.

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 Magyar Telekom Távközlési Nyilvánosan Müködö 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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság. 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

Public companies currently own 66% of Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság better, we need to consider many other factors. For example, we've discovered 2 warning signs for Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság that you should be aware of before investing here.

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.