Is Swissquote Group Holding Ltd (VTX:SQN) popular among insiders?


If you want to know who actually controls Swissquote Group Holding Ltd (VTX:SQN), then you will need to look at the composition of its share register. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet”.

With a market cap of CHF 1.4 billion, Swissquote Group Holding is a decent size, so it’s probably on the radar of institutional investors. Looking at our ownership group data (below), it appears that institutional investors have bought the company. Let’s take a closer look at what different types of shareholders can tell us about Swissquote Group Holding.

Check out our latest analysis for Swissquote Group Holding

SWX: SQN Ownership Breakdown July 5, 2022

What does institutional ownership tell us about Swissquote Group Holding?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

Swissquote Group Holding already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Swissquote Group Holding (below). Of course, keep in mind that there are other factors to consider as well.

SWX:SQN Earnings and Revenue Growth July 5, 2022

Swissquote Group Holding is not owned by hedge funds. With a 12% stake, CEO Marc Burki is the largest shareholder. Paolo Buzzi is the second largest shareholder with 11% of the ordinary shares, and PostFinance AG, Asset Management Arm owns around 5.1% of the company’s shares. 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 data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where 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. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.

Insider ownership of Swissquote Group Holding

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Insiders appear to hold a significant share of Swissquote Group Holding Ltd. It is very interesting to see that insiders hold a significant stake of CHF 335 million in this CHF 1.4 billion company. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

The general public, including retail investors, owns 44% of the company’s shares and therefore cannot be easily ignored. 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 3.6% of the shares issued. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Take for example the ubiquitous specter of investment risk. We have identified 2 warning signs with Swissquote Group Holding, and understanding them should be part of your investment process.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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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