Institutions’ substantial holdings in ATOSS Software imply that they have significant influence over the company’s share price
50% of the company is owned by the two largest shareholders
30% of ATOSS Software is owned by insiders
Any investor in ATOSS Software AG (ETR:AOF) should be aware of the most powerful shareholder groups. With a 36% stake, institutions own the maximum shares in the company. That is, the group will benefit the most if the stock rises (or lose the most if there is a downturn).
Because institutional investors have access to vast amounts of capital, their market movements are usually closely watched by retail or individual investors. Therefore, investing a significant amount of institutional money in a company is often considered a desirable trait.
Let’s take a deeper look at each type of ATOSS Software owner, starting with the diagram below.
Check out our latest analysis for ATOSS Software
What does institutional ownership tell us about ATOSS 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.
As you can see, institutional investors have a decent stake in ATOSS Software. This indicates some credibility among professional investors. But we can’t rely on that fact alone, as institutions sometimes make bad investments, just like everyone else. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a transaction goes wrong, multiple parties may compete to sell shares quickly. This risk is greater in a company without a history of growth. You can see ATOSS Software’s historic earnings and revenue below, but keep in mind there’s always more to the story.
ATOSS Software is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is CEO Andreas F. Obereder, with 30% of shares outstanding. By comparison, the second and third largest shareholders own approximately 20% and 5.8% of the shares.
After a little more research, we discovered that the top two shareholders collectively control more than half of the company’s shares, implying that they have significant power to influence the company’s decisions.
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 quite a few analysts covering the stock, so you could look at forecast growth quite easily.
Insider ownership of ATOSS software
Although the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board and the latter must represent the interests of the shareholders. It is striking that managers at the highest level sometimes sit on the board themselves.
In general, I think insider ownership is a good thing. In some cases, however, this makes it more difficult for other shareholders to hold the board accountable for decisions.
It appears that insiders own a significant portion of ATOSS Software AG. Insiders own €585m worth of shares in the €1.9b company. That’s pretty meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.
General public property
The general public, mostly individual investors, has a 14% stake in ATOSS Software. This size of ownership, while significant, may not be enough to change company policy if the decision is not in line with other major shareholders.
Private equity ownership
With a 20% ownership, private equity firms are in a position to play a role in shaping corporate strategy with an emphasis on value creation. Some may like this because private equity is sometimes activists who hold management accountable. But other times, private equity sells out after the company goes public.
I find it very interesting to see who exactly owns a company. But to gain real insight, we must also consider other information.
I always like to check if there is one history of sales growth. You can also do that by consulting this free overview of historical earnings and revenues detailed chart.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free reporting on analyst forecasts.
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.