trivago N.V.'s (NASDAQ:TRVG) top owners are public companies with 60% stake, while 22% is held by insiders
In This Article:
Key Insights
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The considerable ownership by public companies in trivago indicates that they collectively have a greater say in management and business strategy
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The largest shareholder of the company is Expedia Group, Inc. with a 60% stake
A look at the shareholders of trivago N.V. (NASDAQ:TRVG) can tell us which group is most powerful. We can see that public companies own the lion's share in the company with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Individual insiders, on the other hand, account for 22% of the company's stockholders. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders.
Let's delve deeper into each type of owner of trivago, beginning with the chart below.
View our latest analysis for trivago
What Does The Institutional Ownership Tell Us About trivago?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in trivago. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see trivago's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in trivago. Expedia Group, Inc. is currently the largest shareholder, with 60% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 18% and 3.2% of the shares outstanding respectively, Rolf Theo Schromgens and Par Capital Management, Inc. are the second and third largest shareholders. Rolf Theo Schromgens, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.