Here's What ING Groep N.V.'s (AMS:INGA) Shareholder Ownership Structure Looks Like

By
Simply Wall St
Published
November 21, 2021
ENXTAM:INGA
Source: Shutterstock

The big shareholder groups in ING Groep N.V. (AMS:INGA) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

ING Groep is a pretty big company. It has a market capitalization of €50b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about ING Groep.

Check out our latest analysis for ING Groep

ownership-breakdown
ENXTAM:INGA Ownership Breakdown November 22nd 2021

What Does The Institutional Ownership Tell Us About ING Groep?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in ING Groep. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 ING Groep's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTAM:INGA Earnings and Revenue Growth November 22nd 2021

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. ING Groep is not owned by hedge funds. Capital Research and Management Company is currently the largest shareholder, with 5.2% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 5.1% of common stock, and The Vanguard Group, Inc. holds about 3.6% of the company stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant 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 ING Groep

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 most recent data indicates that insiders own less than 1% of ING Groep N.V.. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own €1.3m of stock. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling.

General Public Ownership

With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over ING Groep. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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 1 warning sign for ING Groep that you should be aware of.

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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