Vetropack Holding AG (VTX:VETN) stock most popular amongst individual investors who own 45%, while private companies hold 37%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
The considerable ownership by individual investors in Vetropack Holding indicates that they collectively have a greater say in management and business strategy
50% of the business is held by the top 14 shareholders
To get a sense of who is truly in control of Vetropack Holding AG (VTX:VETN), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 45% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, private companies make up 37% of the company’s shareholders.
In the chart below, we zoom in on the different ownership groups of Vetropack Holding.
What Does The Institutional Ownership Tell Us About Vetropack Holding?
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 Vetropack Holding. 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 Vetropack Holding's historic earnings and revenue below, but keep in mind there's always more to the story.
SWX:VETN Earnings and Revenue Growth April 21st 2024
Vetropack Holding is not owned by hedge funds. The company's largest shareholder is Cornaz AG-Holding, with ownership of 37%. For context, the second largest shareholder holds about 2.5% of the shares outstanding, followed by an ownership of 2.3% by the third-largest shareholder.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 14 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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.
Insider Ownership Of Vetropack Holding
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
Our most recent data indicates that insiders own less than 1% of Vetropack Holding AG. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It appears that the board holds about CHF3.3m worth of stock. This compares to a market capitalization of CHF626m. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.
General Public Ownership
With a 45% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vetropack 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 37%, of the Vetropack Holding stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
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.
