6 hours Ago By Simply Wall St.
In This Article: Key Insights A look at the shareholders of United Internet AG ( ETR:UTDI ) can tell us which group is most powerful. With 54% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Clearly, insiders benefitted the most after the company's market cap rose by €183m last week. Let's delve deeper into each type of owner of United Internet, beginning with the chart below. See our latest analysis for United Internet What Does The Institutional Ownership Tell Us About United Internet? 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. United Internet already has institutions on the share registry. Indeed, they own a respectable stake in the company.
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 United Internet's earnings history below. Of course, the future is what really matters.
Our data indicates that hedge funds own 6.7% of United Internet. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders.
With a 54% stake, CEO Ralph Dommermuth is the largest shareholder. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game.
For context, the second largest shareholder holds about 6.7% of the shares outstanding, followed by an ownership of 5.5% by the third-largest shareholder.
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..
