Following a 32% decline over last year, recent gains may please Tecan Group AG (VTX:TECN) institutional owners

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

Sat, Jan 11, 2025, 1:14 AM 4 min read

Key Insights

Given the large stake in the stock by institutions, Tecan Group's stock price might be vulnerable to their trading decisions
The top 25 shareholders own 44% of the company
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

A look at the shareholders of Tecan Group AG (VTX:TECN) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Last week's CHF274m market cap gain would probably be appreciated by institutional investors, especially after a year of 32% losses.

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

Check out our latest analysis for Tecan Group

ownership-breakdown — SWX:TECN Ownership Breakdown January 11th 2025

What Does The Institutional Ownership Tell Us About Tecan Group?

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.

We can see that Tecan Group does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Tecan Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — SWX:TECN Earnings and Revenue Growth January 11th 2025

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Tecan Group is not owned by hedge funds. Our data shows that UBS Asset Management AG is the largest shareholder with 10% of shares outstanding. For context, the second largest shareholder holds about 4.5% of the shares outstanding, followed by an ownership of 3.9% by the third-largest shareholder.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 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 Tecan Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data suggests that insiders own under 1% of Tecan Group AG in their own names. Keep in mind that it's a big company, and the insiders own CHF7.2m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 45% 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Tecan Group better, we need to consider many other factors. Be aware that Tecan Group is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.