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Given the large stake that institutions have in the stock, ATOSS Software’s share price could be vulnerable to their trading decisions
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A total of three investors have a majority stake in the company with an ownership of 63%
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Insiders own 22% of ATOSS Software
A look at ATOSS Software SE (ETR:AOF) shareholders can tell us which group is the most powerful. And the group that owns the largest share of the pie are institutions with 23% ownership. In other words, the group faces maximum upside potential (or downside risk).
Because institutional owners have a vast amount of resources and liquidity, their investment decisions often have major influence, especially among individual investors. Therefore, a large chunk of institutional money invested in the company is usually a huge vote of confidence in the future.
In the diagram below we zoom in on the different ownership groups of ATOSS Software.
Check out our latest analysis for ATOSS Software
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We expect most companies to have some institutions on the register, especially as they grow.
ATOSS Software already has settings in 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. 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. With a 22% stake, CEO Andreas F. Obereder is the largest shareholder. Meanwhile, the second and third largest shareholders own 22% and 20% of the outstanding shares, respectively.
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 plenty of analysts covering the stock, so it might be worth seeing what they are predicting as well.
The definition of corporate insiders can be subjective and varies by jurisdiction. Our data reflects individual insiders and includes, at a minimum, board members. 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.
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.
Our information indicates that insiders retain a significant stake in ATOSS Software SE. It’s very interesting to see that insiders have a meaningful stake of €406m in this €1.9b company. Most would be happy if the board invested together with them. You may want to access this free chart of recent insider trading.
The general public – including private investors – owns a 14% 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.
Private equity firms have a 22% stake in ATOSS Software. This suggests that they can influence important policy decisions. Some investors might be encouraged by this, as private equity can sometimes encourage strategies that help the market see the value of the company. It is also possible that these holders will exit the investment after making it public.
It appears that private companies own 20% of ATOSS Software shares. It may be worth looking into this in more detail. If related parties, such as insiders, have an interest in one of these private companies, this must be stated in the annual report. Private companies may also have a strategic interest in the company.
I find it very interesting to see who exactly owns a company. But to gain real insight, we must also consider other information.
I like to dive deeper how a company has performed in the past. Here you can find historical revenues and earnings detailed chart.
Eventually the future is the most important. You have access to this free reporting on analysts’ forecasts for the company.
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.
