What you need to know about the investor mix of TUI AG (ETR: TUI1)

The large shareholder groups of TUI AG (ETR: TUI1) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

TUI has a market cap of 3.9 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 institutions own shares in the company. Let’s dig deeper into each type of owner, to find out more about TUI.

See our latest review for TUI

XTRA ownership breakdown: TUI1 September 19, 2021

What does institutional ownership tell us about TUI?

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.

TUI already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they can be wrong. 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 with no history of growth. You can see TUI’s historical revenue and income below, but keep in mind that there is always more to tell.

profit and revenue growth
XTRA: TUI1 Earnings and Revenue Growth September 19, 2021

We note that hedge funds do not have a significant investment in TUI. Unifirm Limited is currently the largest shareholder of the company with 30% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 3.0% and 1.9% of the outstanding shares, respectively.

A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small holders where no shareholder has a majority.

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. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.

TUI insider ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

We can see that the insiders own shares in TUI AG. It’s a big company, so it’s good to see that level of alignment. Insiders own 67 million euros in shares (at current prices). Most would say it shows the alignment of interests between shareholders and the board. Still, it might be worth checking out if these insiders have sold.

General public property

The general public has a substantial 59% stake in TUI, which suggests that it is a fairly popular stock. 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.

Owned by a private company

It appears that private companies own 32% of TUI’s shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to understand TUI better, there are many other factors to consider. Take risks for example – TUI has 4 warning signs (and 2 which are a bit disturbing) we think you should be aware of.

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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