Public companies own 33% of Orell Füssli AG (VTX:OFN) shares but individual investors control 37% of the company

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

Mon, Nov 4, 2024, 3:24 AM 4 min read

Key Insights

The considerable ownership by individual investors in Orell Füssli indicates that they collectively have a greater say in management and business strategy
55% of the business is held by the top 3 shareholders
Insiders own 22% of Orell Füssli

To get a sense of who is truly in control of Orell Füssli AG (VTX:OFN), it is important to understand the ownership structure of the business. With 37% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, public companies make up 33% of the company’s shareholders.

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

View our latest analysis for Orell Füssli

ownership-breakdown — SWX:OFN Ownership Breakdown November 4th 2024

What Does The Institutional Ownership Tell Us About Orell Füssli?

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 Orell Füssli. 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. 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 Orell Füssli, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth — SWX:OFN Earnings and Revenue Growth November 4th 2024

Orell Füssli is not owned by hedge funds. The company's largest shareholder is Schweizerische Nationalbank, with ownership of 33%. In comparison, the second and third largest shareholders hold about 13% and 8.5% of the stock.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Orell Füssli

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

It seems insiders own a significant proportion of Orell Füssli AG. It has a market capitalization of just CHF151m, and insiders have CHF33m worth of shares in their own names. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Orell Füssli. 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.

Public Company Ownership

It appears to us that public companies own 33% of Orell Füssli. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Orell Füssli better, we need to consider many other factors. Take risks for example - Orell Füssli has 1 warning sign we think you should be aware of.

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.