Yahoo Finance Telefónica Deutschland Holding AG's (ETR:O2D) market cap surged €239m last week, public companies who have a lot riding on the company were rewarded
Key Insights
Significant control over Telefónica Deutschland Holding by public companies implies that the general public has more power to influence management and governance-related decisions
The largest shareholder of the company is Telefónica, S.A. with a 71% stake
Institutional ownership in Telefónica Deutschland Holding is 14%
A look at the shareholders of Telefónica Deutschland Holding AG (ETR:O2D) can tell us which group is most powerful. With 71% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, public companies were the biggest beneficiaries of last week’s 5.0% gain.
In the chart below, we zoom in on the different ownership groups of Telefónica Deutschland Holding.
Check out our latest analysis for Telefónica Deutschland Holding
What Does The Institutional Ownership Tell Us About Telefónica Deutschland Holding?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Telefónica Deutschland Holding does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Telefónica Deutschland Holding's historic earnings and revenue below, but keep in mind there's always more to the story.
Telefónica Deutschland Holding is not owned by hedge funds. Our data shows that Telefónica, S.A. is the largest shareholder with 71% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 3.0% and 1.4% of the shares outstanding respectively, BlackRock, Inc. and Amundi Asset Management SAS are the second and third largest shareholders.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Telefónica Deutschland Holding
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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.
General Public Ownership
With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Telefónica Deutschland Holding. 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.
Public Company Ownership
It appears to us that public companies own 71% of Telefónica Deutschland Holding. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Telefónica Deutschland Holding better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Telefónica Deutschland Holding you should be aware of, and 1 of them is significant.
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.
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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.
