Do insiders own a lot of Swissquote Group Holding SA (VTX:SQN) shares?

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The large groups of shareholders of Swissquote Group Holding SA (VTX:SQN) have power over the company. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.

With a market capitalization of CHF 2.6 billion, Swissquote Group Holding is a decent size, so it’s probably on the radar of institutional investors. In the table below, we can see that the institutions are visible on the share register. We can zoom in on the different ownership groups, to learn more about Swissquote Group Holding.

Check out our latest analysis for Swissquote Group Holding

SWX: SQN Ownership Breakdown March 21, 2022

What does institutional ownership tell us about Swissquote Group Holding?

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.

We can see that Swissquote Group Holding has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth taking a look at the earnings history of Swissquote Group Holding below. Of course, the future is what really matters.

earnings-and-revenue-growth
SWX:SQN Earnings and Revenue Growth March 21, 2022

Hedge funds do not have many shares in Swissquote Group Holding. With a 12% stake, CEO Marc Bürki is the largest shareholder. Meanwhile, the second and third largest shareholders hold 12% and 5.2% of the outstanding shares respectively. Interestingly, the second largest shareholder, Paolo Buzzi, is also a Senior Key Executive, again, indicating strong insider ownership among the company’s major shareholders.

A closer look at our ownership figures suggests that the top 16 shareholders hold a combined ownership of 50%, implying that no single shareholder has a majority.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Insider ownership of Swissquote Group Holding

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Swissquote Group Holding SA. Insiders hold CHF 644 million worth of shares in the CHF 2.6 billion company. It is quite significant. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

With a 39% stake, the general public, consisting mainly of individual investors, has some influence over Swissquote Group Holding. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

We can see that private companies hold 3.5% of the issued shares. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors.

I like to dive deeper on the performance of a company in the past. You can find Earnings and Earnings History in this detailed graph.

If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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