To get an idea of who really controls Westwing Group SE (ETR:WEW), it is important to understand the ownership structure of the company. And the group with the biggest slice of the pie are private equity firms with 34% ownership. In other words, the group faces the maximum upside potential (or downside risk).
After a 14% drop in the share price last week, private equity firms suffered the most losses, but institutions that own 30% of the shares were also affected.
Let’s dive deeper into each Westwing Group owner type, starting with the table below.
If you’re not interested in researching WEW’s ownership structure, we have a free list of interesting investment ideas to potentially inspire your next investment!
What does institutional ownership tell us about the Westwing Group?
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.
Westwing Group already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. 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. So it’s worth checking out Westwing Group’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Reportedly, 5.3% of Westwing Group shares are controlled by hedge funds. This is interesting because hedge funds can be very active and militant. Many are looking for medium-term catalysts that will drive the stock price higher. Looking at our data, we can see that the largest shareholder is Rocket Internet SE with 29% of the shares outstanding. Summit Partners Rkt S.ÃRL is the second largest shareholder with 7.0% of common stock, and Farringdon Capital Management owns approximately 5.3% of the company’s stock.
Our research also shed light on the fact that around 52% of the company is controlled by the top 5 shareholders, suggesting that these owners wield significant influence over the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Westwing Group Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Shareholders would likely be interested to learn that insiders hold shares of Westwing Group SE. In their own name, insiders hold €5.7 million worth of shares in the €110 million company. Some would say this shows the alignment of interests between shareholders and the board, although we generally prefer to see larger insider participations. But it might be worth checking to see if these insiders have sold.
General public property
With an 18% stake, the general public, consisting mainly of individual investors, has some influence over Westwing Group. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private equity ownership
With a 34% stake, private equity firms could influence the Westwing Group board. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after making it public.
Private Company Ownership
We can see that private companies hold 7.0% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
It is always useful to think about the different groups that own shares in a company. But to better understand Westwing Group, we need to consider many other factors. For example, we found 1 warning sign for Westwing Group which you should be aware of before investing here.
At the end of the day the future is the most important. You can access this free analyst forecast report for the company.
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.
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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.
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