Retail investors account for 58% of Chocoladefabriken Lindt & Sprüngli AG’s (VTX:LISN) ownership, while institutions account for 31%

Key Insights

Every investor in Chocoladefabriken Lindt & Sprüngli AG (VTX:LISN) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion’s share in the company with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And institutions on the other hand have a 31% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

In the chart below, we zoom in on the different ownership groups of Chocoladefabriken Lindt & Sprüngli.

Check out our latest analysis for Chocoladefabriken Lindt & Sprüngli

ownership-breakdownownership-breakdown

ownership-breakdown

What Does The Institutional Ownership Tell Us About Chocoladefabriken Lindt & Sprüngli?

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 Chocoladefabriken Lindt & Sprüngli. 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 Chocoladefabriken Lindt & Sprüngli, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growthearnings-and-revenue-growth

earnings-and-revenue-growth

Chocoladefabriken Lindt & Sprüngli is not owned by hedge funds. The company’s largest shareholder is Chocoladefabriken Lindt & Sprüngli AG, ESOP, with ownership of 9.0%. BlackRock, Inc. is the second largest shareholder owning 4.3% of common stock, and The Vanguard Group, Inc. holds about 3.4% of the company stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, meaning that the company’s shares are widely disseminated and there is no dominant shareholder.

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 Chocoladefabriken Lindt & Sprüngli

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

We can report that insiders do own shares in Chocoladefabriken Lindt & Sprüngli AG. Insiders own CHF442m worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 58% of Chocoladefabriken Lindt & Sprüngli shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

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

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.


Source link

Check Also

Why Investors Love Coca-Cola Stock in 5 Simple Charts

The soda giant is still a great stock for long-term investors. Coca-Cola (KO 0.29%) is …

Leave a Reply

Your email address will not be published. Required fields are marked *