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The significant private company ownership in USU Software indicates that they collectively have a greater voice in management and business strategy
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54% of the company is owned by one shareholder (AUSUM GmbH)
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Ownership research, combined with past performance data, can help provide a good understanding of the opportunities in a stock
If you want to know who really controls USU Software AG (HMSE:OSP2), you’ll have to look at the makeup of its share registry. The group that owns the most shares in the company, about 56% to be precise, consists of private companies. In other words, the group faces maximum upside potential (or downside risk).
Meanwhile, individual investors make up 26% of the company’s shareholders.
In the diagram below, we zoom in on the different ownership groups of USU Software.
Check out our latest analysis for USU Software
Institutional investors typically compare their own returns with the returns of a commonly followed index. So they generally consider buying larger companies that are included in the relevant benchmark index.
USU Software already has settings in the share register. They indeed own a respectable stake in the company. This means that the analysts working for these institutions have looked at the stock and they like it. But like anyone else, they can be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. So it’s worth checking out USU Software’s earnings history below. Of course, the future is what really matters.
USU Software is not owned by hedge funds. Our data shows that AUSUM GmbH is the largest shareholder with 54% of shares outstanding. This implies that they have a majority stake in the future of the company. By comparison, the second and third largest shareholders own approximately 4.7% and 3.9% of the shares. Moreover, we discovered that CEO Bernhard Oberschmidt has 1.6% of the shares to his name.
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. While there is some analyst attention, the company is likely not widely covered. So it might get more attention later.
Although the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately accountable to the board. However, it is not uncommon for managers to serve on the board of directors, especially if they are a founder or CEO.
Insider ownership is positive when it indicates that leadership is thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in USU Software AG. It has a market capitalization of just €218m, and insiders have €16m worth of shares in their own names. Some would say this shows the alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
The general public – including retail investors – owns a 26% stake in the company and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policy.
It appears that private companies own 56% of USU Software stock. Private companies can be related parties. Sometimes insiders have an interest in a publicly traded company through a holding in a private company, rather than in their own capacity as an individual. Although it is difficult to draw general conclusions, it is worth mentioning this as an area for further research.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider risks, for example. Every company has them, and we’ve seen them 2 warning signs for USU Software you should know.
If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check out this free report showing analyst forecasts for the future.
Please note: The figures in this article have been calculated based on data from the past twelve months, which relates to the twelve-month period ending on the last date of the month in which the annual accounts are dated. This may not correspond to the figures in the full annual report.
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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.
