Advertisement
Canada markets closed
  • S&P/TSX

    21,708.44
    +52.39 (+0.24%)
     
  • S&P 500

    5,011.12
    -11.09 (-0.22%)
     
  • DOW

    37,775.38
    +22.07 (+0.06%)
     
  • CAD/USD

    0.7255
    -0.0008 (-0.11%)
     
  • CRUDE OIL

    84.98
    +2.25 (+2.72%)
     
  • Bitcoin CAD

    85,098.06
    -533.31 (-0.62%)
     
  • CMC Crypto 200

    1,278.40
    +392.86 (+42.77%)
     
  • GOLD FUTURES

    2,400.70
    +2.70 (+0.11%)
     
  • RUSSELL 2000

    1,942.96
    -4.99 (-0.26%)
     
  • 10-Yr Bond

    4.6470
    +0.0620 (+1.35%)
     
  • NASDAQ futures

    17,333.25
    -214.00 (-1.22%)
     
  • VOLATILITY

    18.00
    -0.21 (-1.15%)
     
  • FTSE

    7,877.05
    +29.06 (+0.37%)
     
  • NIKKEI 225

    36,818.81
    -1,260.89 (-3.31%)
     
  • CAD/EUR

    0.6820
    -0.0001 (-0.01%)
     

Could The creditshelf Aktiengesellschaft (ETR:CSQ) Ownership Structure Tell Us Something Useful?

A look at the shareholders of creditshelf Aktiengesellschaft (ETR:CSQ) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

creditshelf is a smaller company with a market capitalization of €87m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about CSQ.

View our latest analysis for creditshelf

XTRA:CSQ Ownership Summary, September 23rd 2019
XTRA:CSQ Ownership Summary, September 23rd 2019

What Does The Institutional Ownership Tell Us About creditshelf?

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.

ADVERTISEMENT

As you can see, institutional investors own 6.3% of creditshelf. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 looking at creditshelf's earnings history, below. Of course, the future is what really matters.

XTRA:CSQ Income Statement, September 23rd 2019
XTRA:CSQ Income Statement, September 23rd 2019

We note that hedge funds don't have a meaningful investment in creditshelf. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of creditshelf

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of creditshelf Aktiengesellschaft. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It has a market capitalization of just €87m, and the board has only €61k worth of shares in their own names. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, with a 11% stake in the company, will not easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 83%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, 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 can access this detailed graph of past earnings, revenue and cash flow.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.