Public companies in Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (BUSE:MTELEKOM) are its biggest bettors, and their bets paid off as stock gained 3.4% 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 16%

Every investor in Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (BUSE:MTELEKOM) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 66% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies were the biggest beneficiaries of last week’s 3.4% 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.

View 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.

Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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.

We note that hedge funds don't have a meaningful investment in Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság. Deutsche Telekom AG is currently the company's largest shareholder with 66% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 5.1% and 1.6%, 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság

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.

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.

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

The general public, who are usually individual investors, hold a 17% stake in Magyar Telekom Távközlési Nyilvánosan Müködö 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.

Public Company Ownership

We can see that public companies hold 66% of the Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com