Stock Analysis

Wolters Kluwer N.V. (AMS:WKL) is largely controlled by institutional shareholders who own 60% of the company

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ENXTAM:WKL
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Key Insights

  • Institutions' substantial holdings in Wolters Kluwer implies that they have significant influence over the company's share price
  • 43% of the business is held by the top 25 shareholders
  • Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Wolters Kluwer N.V. (AMS:WKL) can tell us which group is most powerful. With 60% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's delve deeper into each type of owner of Wolters Kluwer, beginning with the chart below.

View our latest analysis for Wolters Kluwer

ownership-breakdown
ENXTAM:WKL Ownership Breakdown December 3rd 2023

What Does The Institutional Ownership Tell Us About Wolters Kluwer?

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.

As you can see, institutional investors have a fair amount of stake in Wolters Kluwer. 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 Wolters Kluwer's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTAM:WKL Earnings and Revenue Growth December 3rd 2023

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Wolters Kluwer. Looking at our data, we can see that the largest shareholder is Mawer Investment Management Ltd. with 5.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.1% and 4.1% of the stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Wolters Kluwer

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 Wolters Kluwer N.V.. 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 €14m worth of shares (at current prices). Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Wolters Kluwer better, we need to consider many other factors. Take risks for example - Wolters Kluwer has 1 warning sign we think 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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