CALIDA Holding AG (VTX:CALN) has caught the attention of institutional investors who hold a sizeable 43% stake

editorial-team@simplywallst.com (Simply Wall St)

Sun, Nov 19, 2023, 10:54 PM 4 min read

Key Insights

Significantly high institutional ownership implies CALIDA Holding's stock price is sensitive to their trading actions
A total of 4 investors have a majority stake in the company with 55% ownership
Insiders own 34% of CALIDA Holding

To get a sense of who is truly in control of CALIDA Holding AG (VTX:CALN), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's delve deeper into each type of owner of CALIDA Holding, beginning with the chart below.

View our latest analysis for CALIDA Holding

ownership-breakdown — SWX:CALN Ownership Breakdown November 20th 2023

What Does The Institutional Ownership Tell Us About CALIDA Holding?

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 companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in CALIDA Holding. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see CALIDA Holding's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — SWX:CALN Earnings and Revenue Growth November 20th 2023

CALIDA Holding is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Erich Kellenberger with 33% of shares outstanding. With 9.9% and 6.2% of the shares outstanding respectively, Veraison Capital AG and Vontobel Asset Management AG are the second and third largest shareholders.

Our research also brought to light the fact that roughly 55% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of CALIDA Holding

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

Our most recent data indicates that insiders own a reasonable proportion of CALIDA Holding AG. Insiders have a CHF78m stake in this CHF231m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 23% stake in CALIDA Holding. 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.

Next Steps:

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

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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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.