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Public companies account for 36% of Friedrich Vorwerk Group SE's (ETR:VH2) ownership, while individual investors account for 29%

Key Insights

  • Friedrich Vorwerk Group's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public

  • A total of 2 investors have a majority stake in the company with 54% ownership

  • Insiders own 18% of Friedrich Vorwerk Group

If you want to know who really controls Friedrich Vorwerk Group SE (ETR:VH2), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 36% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 29% ownership in the company.

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Let's take a closer look to see what the different types of shareholders can tell us about Friedrich Vorwerk Group.

Check out our latest analysis for Friedrich Vorwerk Group

ownership-breakdown
XTRA:VH2 Ownership Breakdown January 4th 2024

What Does The Institutional Ownership Tell Us About Friedrich Vorwerk Group?

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.

As you can see, institutional investors have a fair amount of stake in Friedrich Vorwerk Group. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Friedrich Vorwerk Group's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
XTRA:VH2 Earnings and Revenue Growth January 4th 2024

We note that hedge funds don't have a meaningful investment in Friedrich Vorwerk Group. Our data shows that MBB SE is the largest shareholder with 36% of shares outstanding. With 18% and 3.0% of the shares outstanding respectively, Torben Kleinfeldt and Amundi Asset Management SAS are the second and third largest shareholders. Torben Kleinfeldt, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Friedrich Vorwerk Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that insiders maintain a significant holding in Friedrich Vorwerk Group SE. It has a market capitalization of just €295m, and insiders have €53m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Friedrich Vorwerk Group. 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.

Public Company Ownership

It appears to us that public companies own 36% of Friedrich Vorwerk Group. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Friedrich Vorwerk Group has 2 warning signs we think you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.