What does the ownership structure look like for INDUS Holding AG (ETR: INH)?


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The large shareholder groups of INDUS Holding AG (ETR: INH) have power over the company. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

INDUS Holding has a market capitalization of 886 million euros, so we would expect some institutional investors to take notice of the stock. In the graph below, we can see that the institutions hold shares in the company. We can zoom in on the different ownership groups, to find out more about INDUS Holding.

See our latest analysis for INDUS Holding

XTRA ownership breakdown: INH December 29, 2021

What does institutional ownership tell us about INDUS Holding?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

It is clear that INDUS Holding has institutional investors; and they own a large portion of the company’s stock. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out INDUS Holding’s earnings history below. Of course, the future is what really matters.

profit and revenue growth
XTRA: INH Profits and Revenue Growth December 29, 2021

We note that the hedge funds do not have a significant investment in INDUS Holding. Versicherungskammer Bayern Versicherungsanstalt Des öffentlichen Rechts, Asset Management Arm is currently the largest shareholder of the company with 18% of the shares outstanding. With 5.3% and 3.7% of the outstanding shares respectively, Hans Selzer and Wirtgen Invest Holding GmbH are the second and third shareholders.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.

Insider ownership of INDUS Holding

The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

We can see that insiders own shares in INDUS Holding AG. It’s a pretty big company, so it’s generally positive to see a potentially meaningful roster. In this case, they hold around 47 million euros of shares (at current prices). Most would say it shows the alignment of interests between shareholders and the board. Still, it might be worth checking out if these insiders have sold.

General public property

The general public, who are usually individual investors, own a substantial 57% stake in INDUS Holding, which suggests that it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand INDUS Holding, there are many other factors that we need to take into account. To this end, you need to know the 3 warning signs we spotted with INDUS Holding.

If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

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