If you want to know who actually controls Fresenius Medical Care AG & Co. KGaA (ETR: FME), then you will need to examine the makeup of their share register. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. We also tend to see a decrease in insider ownership in companies that were previously owned by the public.
Fresenius Medical Care KGaA is a fairly large company. It has a market capitalization of 21 billion euros. Normally, institutions own a significant share of a company of this size. Our analysis of company ownership, below, shows that institutional investors bought the company. Let’s dig deeper into each type of owner to find out more about Fresenius Medical Care KGaA.
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What does institutional ownership tell us about Fresenius Medical Care KGaA?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
We can see that Fresenius Medical Care KGaA has institutional investors; and they own a large portion of the company’s shares. This suggests some credibility among professional investors. But we cannot trust this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Fresenius Medical Care KGaA’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Fresenius Medical Care KGaA is not owned by hedge funds. The main shareholder of the company is Fresenius SE & Co. KGaA, with a 32% stake. In comparison, the second and third shareholders hold around 5.2% and 3.3% of the capital.
We also observed that the top 7 shareholders make up more than half of the share register, with a few smaller shareholders to some extent to balance the interests of the larger ones.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a lot of analysts covering the stock, so you can look at the expected growth quite easily.
Insider property of Fresenius Medical Care KGaA
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
We note that our data does not show any member of the board of directors owning shares, personally. Not all jurisdictions have the same rules for disclosing insider ownership, and it’s possible that we’ve been missing something here. So you can click here to learn more about the CEO.
General public property
The general public has a 30% stake in Fresenius Medical Care KGaA. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Public enterprise ownership
It seems to us that state-owned companies own 32% of Fresenius Medical Care KGaA. It’s hard to say for sure, but it suggests they have intertwined business interests. This can be a strategic issue, so it’s worth watching this space for changes in ownership.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Fresenius Medical Care KGaA, there are many other factors that we need to consider. Consider risks, for example. Every business has them, and we’ve spotted 1 warning sign for Fresenius Medical Care KGaA you should know.
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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