Key Insights

• Given the large stake in the stock by institutions, Nedap's stock price might be vulnerable to their trading decisions

• The top 5 shareholders own 51% of the company

• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Nedap N.V. (AMS:NEDAP) can tell us which group is most powerful. With 56% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

In the chart below, we zoom in on the different ownership groups of Nedap.

See our latest analysis for Nedap

What Does The Institutional Ownership Tell Us About Nedap?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Nedap. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Nedap's earnings history below. Of course, the future is what really matters.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Nedap is not owned by hedge funds. Our data shows that Cross Options Beheer BV, Asset Management Arm is the largest shareholder with 15% of shares outstanding. Teslin Capital Management BV is the second largest shareholder owning 10% of common stock, and NN Group N.V, Asset Management Arm holds about 10% of the company stock. Additionally, the company's CEO Ruben Wegman directly holds 1.0% of the total shares outstanding.

Our research also brought to light the fact that roughly 51% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.