Key Insights

• Significant control over OSRAM Licht by public companies implies that the general public has more power to influence management and governance-related decisions

• 80% of the company is held by a single shareholder (ams-OSRAM AG)

• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls OSRAM Licht AG (HMSE:OSR), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 80% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 14% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about OSRAM Licht.

Check out our latest analysis for OSRAM Licht

What Does The Institutional Ownership Tell Us About OSRAM Licht?

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.

OSRAM Licht already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of OSRAM Licht, (below). Of course, keep in mind that there are other factors to consider, too.

OSRAM Licht is not owned by hedge funds. Our data shows that ams-OSRAM AG is the largest shareholder with 80% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Norges Bank Investment Management is the second largest shareholder owning 2.2% of common stock, and Syquant Capital SAS holds about 1.7% of the company stock.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of OSRAM Licht

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. 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

It appears to us that public companies own 80% of OSRAM Licht. 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 OSRAM Licht better, we need to consider many other factors. For example, we've discovered 3 warning signs for OSRAM Licht (2 make us uncomfortable!) that you should be aware of before investing here.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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