A look at the shareholders of Mensch und Maschine Software SE (ETR:MUM) can tell us which group is the most powerful. With a 47% stake, individual insiders own the maximum shares in the company. In other words, the group will gain the most (or lose the most) from their investment in the company.
So there is a lot at stake for Mensch und Maschine Software insiders and every decision they make about the future of the company is important to them from a financial point of view.
Let’s take a deeper look at each type of Mensch und Maschine Software owner, starting with the diagram below.
Check out our latest analysis for human and machine 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.
Mensch und Maschine Software already has settings on the share register. They indeed own a respectable stake in the company. This may indicate that the company has a degree of credibility in the investment community. However, it’s best to be wary and not rely on the supposed validation that institutional investors bring. They too are 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 taking a look at Mensch und Maschine Software’s earnings history below. Of course, the future is what really matters.
We note that hedge funds do not make meaningful investments in Mensch und Maschine Software. From our data we deduce that the largest shareholder is Adi Drotleff (who also holds the title of Chairman of the Board of Directors) with 47% of the outstanding shares. It’s usually considered a good sign when insiders own a significant number of shares in the company, and in this case we’re happy to see a company insider playing the role of a key stakeholder. By comparison, the second and third largest shareholders own approximately 3.0% and 1.3% of the shares.
To make our research more interesting, we discovered that the three largest shareholders have a majority stake in the company, meaning they are powerful enough 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 a fair number of analysts covering the stock, so it could be useful to know their overall view on the future.
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.
Our latest data shows that insiders own a fair share of Mensch und Maschine Software SE. Insiders own EUR 422 million worth of shares in the EUR 899 million company. It’s great to see insiders so invested in the company. It might be worth checking if these insiders have bought anything recently.
The general public – including retail investors – owns a 37% 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.
While it is worth considering the different groups that own a business, there are other factors that are even more important.
Many find it useful to take an in-depth look at how a company has performed in the past. You have access to this detailed chart of previous earnings, revenue and cash flow.
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.
Do you have feedback on this article? Worried about the content?Please contact us directly from us. You can also email the editorial team (at) Simplywallst.com.
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.
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