Institutional owners could take dramatic action as recent 3.4% drop in TAG Immobilien AG (ETR:TEG) adds to year-on-year losses

To get an idea of ​​who actually controls TAG Immobilien AG (ETR:TEG), it is important to understand the ownership structure of the company. With 51% of the capital, the institutions hold the maximum number of shares in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

It follows that institutional investors were the hardest hit group after the company’s market capitalization fell to 1.5 billion euros last week following a 3.4% drop in the share price. . This set of investors may be particularly concerned about the current loss, which comes on top of a 64% year-on-year loss for shareholders. Often referred to as “market makers,” institutions wield significant power in influencing the price dynamics of any stock. Therefore, if the weakness in TAG Immobilien’s share price continues, institutional investors may feel compelled to sell the stock, which may not be ideal for individual investors.

Let’s dive deeper into each type of TAG Immobilien owner, starting with the table below.

Before looking at the breakdown of owners, note that our analysis indicates that The TEG is potentially undervalued!

XTRA:TEG Ownership Breakdown September 10, 2022

What does institutional ownership tell us about TAG Immobilien?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

TAG Immobilien already has establishments registered in the register of shareholders. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past revenue trajectory of TAG Immobilien, (below). Of course, keep in mind that there are other factors to consider as well.

XTRA: TEG Earnings and Revenue Growth September 10, 2022

Since institutional investors own more than half of the issued shares, the board will likely have to pay attention to their preferences. We note that hedge funds have no significant investment in TAG Immobilien. BlackRock, Inc. is currently the company’s largest shareholder with 7.4% of the shares outstanding. The second and third largest shareholders are BayernInvest Kapitalverwaltungsgesellschaft mbH and Flossbach von Storch AG, with an equal number of shares to their name at 4.1%.

Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no single individual holds a majority stake.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Insider Ownership Of TAG Immobilien

The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

We note that our data does not show any board members personally owning shares. Not all jurisdictions have the same rules regarding insider ownership disclosure, and we may be missing something here. So you can click here to learn more about the CEO.

General public property

The general public, including retail investors, owns 45% of the company’s shares and therefore cannot be easily ignored. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Private Company Ownership

It seems that the Private Companies hold 3.9% of the capital of TAG Immobilien. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next steps:

I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Take for example the ubiquitous specter of investment risk. We have identified 6 warning signs with TAG Immobilien (at least 2 that make us uncomfortable), and understanding them should be part of your investment process.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Calculation of discounted cash flows for each share

Simply Wall St performs a detailed calculation of discounted cash flow every 6 hours for every stock in the market, so if you want to find the intrinsic value of any company, just search here. It’s free.

About William G.

Check Also

Following Prosafe SE’s (OB:PRS) latest kr302m market cap drop, institutional owners may be forced to take tough action

To get an idea of ​​who actually controls Prosafe SE (OB:PRS), it is important to …