Key Insights
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Significant control over Stemmer Imaging by private companies implies that the general public has more power to influence management and governance-related decisions
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The top 2 shareholders own 69% of the company
Every investor in Stemmer Imaging AG (ETR:S9I) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 48% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk).
Individual insiders, on the other hand, account for 26% of the company’s stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let’s take a closer look to see what the different types of shareholders can tell us about Stemmer Imaging.
View our latest analysis for Stemmer Imaging
What Does The Institutional Ownership Tell Us About Stemmer Imaging?
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 Stemmer Imaging. 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 Stemmer Imaging’s earnings history below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Stemmer Imaging. The company’s largest shareholder is Primepulse SE, with ownership of 48%. Klaus Weinmann is the second largest shareholder owning 21% of common stock, and Martin Kersting holds about 2.6% of the company stock. In addition, we found that Arne Dehn, the CEO has 0.7% of the shares allocated to their name.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company’s shares, implying that they have considerable power to influence the company’s decisions.
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 Stemmer Imaging
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Stemmer Imaging AG. It has a market capitalization of just €221m, and insiders have €58m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 16% stake in Stemmer Imaging. 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
Our data indicates that Private Companies hold 48%, of the company’s shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it’s hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand Stemmer Imaging better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we’ve spotted with Stemmer Imaging .
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.
Read More: While insiders own 26% of Stemmer Imaging AG (ETR:S9I), private companies are its largest