【how many lufs should my mix be】Can We See Significant Insider Ownership On The Bayerische Motoren Werke Aktiengesellschaft (FRA:BMW) Share Register?

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Every investor in Bayerische Motoren Werke Aktiengesellschaft (

FRA:BMW

) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of €48b, Bayerische Motoren Werke is rather large. We’d expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below below, we can see that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about BMW.

View our latest analysis for Bayerische Motoren Werke

DB:BMW Ownership Summary February 1st 19

What Does The Institutional Ownership Tell Us About Bayerische Motoren Werke?

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.

Bayerische Motoren Werke already has institutions on the share registry. Indeed, they own 34% of the company. 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 Bayerische Motoren Werke’s earnings history, below. Of course, the future is what really matters.

DB:BMW Income Statement Export February 1st 19

Bayerische Motoren Werke is not owned by hedge funds. 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 Bayerische Motoren Werke

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Story continues

Our most recent data indicates that insiders own a reasonable proportion of Bayerische Motoren Werke Aktiengesellschaft. Insiders own €9.2b worth of shares in the €48b company. That’s quite meaningful. It is good to see this level of investment. You can

check here to see if those insiders have been buying recently.

General Public Ownership

With a 31% ownership, the general public have some degree of sway over BMW. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 15%, of the BMW stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it’s hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful

to take an in depth look at how a company has performed in the past. You can access

this

detailed graph

of past earnings, revenue and cash flow

.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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