Yahoo Finance ABN AMRO Bank N.V.'s (AMS:ABN) market cap touched €13b last week, benefiting both state or government who own 65% as well as institutions
Key Insights
The considerable ownership by state or government in ABN AMRO Bank indicates that they collectively have a greater say in management and business strategy
Netherlands owns 58% of the company
Every investor in ABN AMRO Bank N.V. (AMS:ABN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are state or government with 65% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
State or government gained the most after market cap touched €13b last week, while institutions who own 21% also benefitted.
Let's take a closer look to see what the different types of shareholders can tell us about ABN AMRO Bank.
Check out our latest analysis for ABN AMRO Bank
What Does The Institutional Ownership Tell Us About ABN AMRO Bank?
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 would expect most companies to have some institutions on the register, especially if they are growing.
ABN AMRO Bank already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of ABN AMRO Bank, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in ABN AMRO Bank. Looking at our data, we can see that the largest shareholder is Netherlands with 58% of shares outstanding. This implies that they have majority interest control of the future of the company. With 6.9% and 2.8% of the shares outstanding respectively, Stichting Administratiekantoor Beheer Financiële Instellingen and JPMorgan Chase & Co, Brokerage and Securities Investments are the second and third largest shareholders.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of ABN AMRO Bank
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are 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 most recent data indicates that insiders own less than 1% of ABN AMRO Bank N.V.. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own €152k worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, who are usually individual investors, hold a 14% stake in ABN AMRO Bank. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - ABN AMRO Bank has 2 warning signs (and 1 which shouldn't be ignored) we think you should know about.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
