In This Article:
Key Insights
-
Significant control over Banque Cantonale de Genève by state or government implies that the general public has more power to influence management and governance-related decisions
-
66% of the business is held by the top 2 shareholders
-
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Banque Cantonale de Genève SA (VTX:BCGE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are state or government with 66% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, state or government were the biggest beneficiaries of last week’s 3.8% gain.
In the chart below, we zoom in on the different ownership groups of Banque Cantonale de Genève.
Check out our latest analysis for Banque Cantonale de Genève
What Does The Institutional Ownership Tell Us About Banque Cantonale de Genève?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Banque Cantonale de Genève. 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. 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 Banque Cantonale de Genève, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Banque Cantonale de Genève. Our data shows that State of Geneva is the largest shareholder with 45% of shares outstanding. For context, the second largest shareholder holds about 21% of the shares outstanding, followed by an ownership of 6.0% by the third-largest shareholder.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.