Stock Analysis

What Kind Of Shareholder Appears On The N.V. Nederlandsche Apparatenfabriek Nedap's (AMS:NEDAP) Shareholder Register?

A look at the shareholders of N.V. Nederlandsche Apparatenfabriek Nedap (AMS:NEDAP) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.

N.V. Nederlandsche Apparatenfabriek Nedap is not a large company by global standards. It has a market capitalization of €322m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about N.V. Nederlandsche Apparatenfabriek Nedap.

See our latest analysis for N.V. Nederlandsche Apparatenfabriek Nedap

ENXTAM:NEDAP Ownership Summary, February 19th 2020
ENXTAM:NEDAP Ownership Summary, February 19th 2020

What Does The Institutional Ownership Tell Us About N.V. Nederlandsche Apparatenfabriek Nedap?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

N.V. Nederlandsche Apparatenfabriek Nedap already has institutions on the share registry. Indeed, they own 55% of the company. 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 N.V. Nederlandsche Apparatenfabriek Nedap's earnings history, below. Of course, the future is what really matters.

ENXTAM:NEDAP Income Statement, February 19th 2020
ENXTAM:NEDAP Income Statement, February 19th 2020

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in N.V. Nederlandsche Apparatenfabriek Nedap. Cross Options Beheer BV, Asset Management Arm is currently the largest shareholder, with 15% of shares outstanding. NN Investment Partners International Holdings B.V. is the second largest shareholder with 14% of common stock, followed by Teslin Capital Management BV, holding 11% of the stock.

Additionally, we found that 50% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of N.V. Nederlandsche Apparatenfabriek Nedap

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 information suggests that N.V. Nederlandsche Apparatenfabriek Nedap insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than €2.5m worth of shares in the €322m company. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 37% stake in the company, will not 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.

Private Company Ownership

It seems that Private Companies own 5.0%, of the NEDAP stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand N.V. Nederlandsche Apparatenfabriek Nedap better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for N.V. Nederlandsche Apparatenfabriek Nedap (of which 1 is significant!) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

About ENXTAM:NEDAP

Nedap

Develops and manufactures electronic equipment and software in the Netherlands, Germany, rest of Europe, North America, and internationally.

Outstanding track record with excellent balance sheet.

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