Private companies among Dottikon ES Holding AG's (VTX:DESN) largest shareholders, saw gain in holdings value after stock jumped 4.8% last week
Simply Wall St
4 min read
Key Insights
The considerable ownership by private companies in Dottikon ES Holding indicates that they collectively have a greater say in management and business strategy
57% of the company is held by a single shareholder (EVOLMA Holding AG)
To get a sense of who is truly in control of Dottikon ES Holding AG (VTX:DESN), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, private companies collectively scored the highest last week as the company hit CHF3.2b market cap following a 4.8% gain in the stock.
Let's delve deeper into each type of owner of Dottikon ES Holding, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Dottikon ES 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.
We can see that Dottikon ES Holding does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Dottikon ES Holding's earnings history below. Of course, the future is what really matters.
SWX:DESN Earnings and Revenue Growth September 17th 2023
We note that hedge funds don't have a meaningful investment in Dottikon ES Holding. Looking at our data, we can see that the largest shareholder is EVOLMA Holding AG with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 9.1% and 4.8%, of the shares outstanding, respectively. Markus Blocher, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
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.
Insider Ownership Of Dottikon ES Holding
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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own a reasonable proportion of Dottikon ES Holding AG. Insiders own CHF558m worth of shares in the CHF3.2b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
General Public Ownership
With a 19% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dottikon ES Holding. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
It seems that Private Companies own 57%, of the Dottikon ES Holding stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Dottikon ES Holding better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Dottikon ES Holding you should know about.
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.
