Swiss Prime Site AG's (VTX:SPSN) market cap touched CHF6.7b last week, benefiting both individual investors who own 52% as well as institutions
In This Article:
Key Insights
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Significant control over Swiss Prime Site by individual investors implies that the general public has more power to influence management and governance-related decisions
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42% of the business is held by the top 25 shareholders
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48% of Swiss Prime Site is held by Institutions
If you want to know who really controls Swiss Prime Site AG (VTX:SPSN), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While individual investors were the group that benefitted the most from last week’s CHF215m market cap gain, institutions too had a 48% share in those profits.
Let's take a closer look to see what the different types of shareholders can tell us about Swiss Prime Site.
See our latest analysis for Swiss Prime Site
What Does The Institutional Ownership Tell Us About Swiss Prime Site?
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.
As you can see, institutional investors have a fair amount of stake in Swiss Prime Site. 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. 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 Swiss Prime Site, (below). Of course, keep in mind that there are other factors to consider, too.
Swiss Prime Site is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 8.7% of shares outstanding. With 8.0% and 5.0% of the shares outstanding respectively, Credit Suisse Asset Management (Switzerland) Ltd. and UBS Asset Management AG are the second and third largest shareholders.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.