Medacta Group SA (VTX:MOVE) insiders have significant skin in the game with 70% ownership

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

Wed, Sep 25, 2024, 11:01 PM 4 min read

Key Insights

Medacta Group's significant insider ownership suggests inherent interests in company's expansion
A total of 3 investors have a majority stake in the company with 60% ownership
Institutions own 17% of Medacta Group

To get a sense of who is truly in control of Medacta Group SA (VTX:MOVE), it is important to understand the ownership structure of the business. With 70% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

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

View our latest analysis for Medacta Group

ownership-breakdown — SWX:MOVE Ownership Breakdown September 26th 2024

What Does The Institutional Ownership Tell Us About Medacta Group?

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 Medacta Group. 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 Medacta Group's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth — SWX:MOVE Earnings and Revenue Growth September 26th 2024

Hedge funds don't have many shares in Medacta Group. With a 20% stake, CEO Francesco Siccardi is the largest shareholder. The second and third largest shareholders are Maria Siccardi Tonolli and Alessandro Siccardi, with an equal amount of shares to their name at 20%.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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 Medacta Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 most recent data indicates that insiders own the majority of Medacta Group SA. This means they can collectively make decisions for the company. Given it has a market cap of CHF2.5b, that means insiders have a whopping CHF1.7b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for Medacta Group that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.