What types of shareholders do Wolters Kluwer NV (AMS: WKL) own?
Every investor in Wolters Kluwer NV (AMS: WKL) should know the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
Wolters Kluwer has a market cap of 25 billion euros, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutional investors bought the company. We can zoom in on the different ownership groups, to find out more about Wolters Kluwer.
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What does institutional ownership tell us about Wolters Kluwer?
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.
Wolters Kluwer already has institutions entered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see Wolters Kluwer’s historical income and earnings below, but keep in mind that there is always more to tell.
Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. Wolters Kluwer does not belong to hedge funds. Mawer Investment Management Limited is currently the largest shareholder of the company with 5.2% of the shares outstanding. Lazard Asset Management LLC is the second largest shareholder holding 5.1% of the common stock, and BlackRock, Inc. owns approximately 4.3% of the company’s stock.
Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no individual has a controlling stake.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider property of Wolters Kluwer
The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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 information suggests that insiders of Wolters Kluwer NV own less than 1% of the company. Being so important, we wouldn’t expect insiders to own a large chunk of the shares. Collectively, they own 10 million euros in shares. It’s good to see board members owning stocks, but it might be worth checking out if those insiders have bought.
General public property
The general public, with a 37% stake in the company, will not be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
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. Take risks for example – Wolters Kluwer has 1 warning sign we think you should be aware.
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 consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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