Stock Analysis

Institutions profited after Just Eat Takeaway.com N.V.'s (AMS:TKWY) market cap rose €77m last week but retail investors profited the most

ENXTAM:TKWY
Source: Shutterstock

Key Insights

  • Just Eat Takeaway.com's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 51% of the business is held by the top 12 shareholders
  • Institutions own 31% of Just Eat Takeaway.com

Every investor in Just Eat Takeaway.com N.V. (AMS:TKWY) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 46% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that reaped the most benefits after last week’s 3.3% price gain, institutions also received a 31% cut.

Let's delve deeper into each type of owner of Just Eat Takeaway.com, beginning with the chart below.

See our latest analysis for Just Eat Takeaway.com

ownership-breakdown
ENXTAM:TKWY Ownership Breakdown July 12th 2024

What Does The Institutional Ownership Tell Us About Just Eat Takeaway.com?

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 Just Eat Takeaway.com. 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. 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 Just Eat Takeaway.com's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTAM:TKWY Earnings and Revenue Growth July 12th 2024

It looks like hedge funds own 15% of Just Eat Takeaway.com shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Looking at our data, we can see that the largest shareholder is The Baupost Group, L.L.C. with 8.2% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.4% and 6.4% of the stock. Jitse Groen, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

A closer look at our ownership figures suggests that the top 12 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Just Eat Takeaway.com

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.

We can report that insiders do own shares in Just Eat Takeaway.com N.V.. This is a big company, so it is good to see this level of alignment. Insiders own €185m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 46% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Just Eat Takeaway.com is showing 2 warning signs in our investment analysis , you should know about...

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.