Public companies account for 76% of HOCHTIEF Aktiengesellschaft's (ETR:HOT) ownership, while individual investors account for 18%

Thu, Sep 19, 2024, 3:27 AM 4 min read

HOCHTIEF's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
76% of the company is held by a single shareholder (ACS, Actividades de Construcción y Servicios, S.A.)
Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of HOCHTIEF Aktiengesellschaft (ETR:HOT), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 76% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 18% of the company’s shareholders.

Let's delve deeper into each type of owner of HOCHTIEF, beginning with the chart below.

Check out our latest analysis for HOCHTIEF

What Does The Institutional Ownership Tell Us About HOCHTIEF?

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.

We can see that HOCHTIEF 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. 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 HOCHTIEF's earnings history below. Of course, the future is what really matters.

HOCHTIEF is not owned by hedge funds. Our data shows that ACS, Actividades de Construcción y Servicios, S.A. is the largest shareholder with 76% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 1.1% and 0.9%, of the shares outstanding, respectively.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of HOCHTIEF

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 18% ownership, the general public, mostly comprising of individual investors, have some degree of sway over HOCHTIEF. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

Public companies currently own 76% of HOCHTIEF stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand HOCHTIEF better, we need to consider many other factors. For instance, we've identified 2 warning signs for HOCHTIEF that you should be aware of.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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Public companies account for 76% of HOCHTIEF Aktiengesellschaft's (ETR:HOT) ownership, while individual investors account for 18%

In This Article:

Key Insights

What Does The Institutional Ownership Tell Us About HOCHTIEF?

Insider Ownership Of HOCHTIEF

General Public Ownership

Public Company Ownership

Next Steps:

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