What type of shareholders make up the share register of Koninklijke DSM NV (AMS: DSM)?
The large shareholder groups of Koninklijke DSM NV (AMS: DSM) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that were previously owned by the state tend to have fewer insiders.
Koninklijke DSM is a fairly large company. It has a market capitalization of 28 billion euros. Normally, institutions would own a significant share of a company of this size. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. We can zoom in on the different ownership groups, to find out more about Koninklijke DSM.
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What does institutional ownership tell us about Koninklijke DSM?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most businesses to have some institutions listed, especially if they are growing.
As you can see, institutional investors own a large share of Koninklijke DSM. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Koninklijke DSM’s profit history below. Of course, the future is what really matters.
Koninklijke DSM is not owned by hedge funds. The company’s largest shareholder is BlackRock, Inc., with a 4.0% stake. For context, the second largest shareholder owns approximately 4.0% of the outstanding shares, followed by 3.4% ownership by the third largest shareholder.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider property of Koninklijke DSM
The definition of an insider may differ slightly from country to country, but board members still count. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data suggests that insiders own less than 1% of Koninklijke DSM NV in their own name. Being so important, we wouldn’t expect insiders to own a large chunk of the shares. Collectively, they own 39 million euros in shares. It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
The general public collectively owns 51% of the shares of Koninklijke DSM. This size of property gives mainstream investors some collective power. They can and probably do influence decisions about executive compensation, dividend policies and proposed business acquisitions.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Consider risks, for example. Every business has them, and we’ve spotted 2 warning signs for Koninklijke DSM you should know.
Ultimately 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 from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be in line with the figures in the annual report for the entire year.
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