Banque Cantonale Vaudoise's (VTX:BCVN) top owners are state or government with 67% stake, while 24% is held by individual investors

By
Simply Wall St
Published
April 13, 2022
SWX:BCVN
Source: Shutterstock

To get a sense of who is truly in control of Banque Cantonale Vaudoise (VTX:BCVN), it is important to understand the ownership structure of the business. With 67% stake, state or government possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 24% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about Banque Cantonale Vaudoise.

View our latest analysis for Banque Cantonale Vaudoise

ownership-breakdown
SWX:BCVN Ownership Breakdown April 13th 2022

What Does The Institutional Ownership Tell Us About Banque Cantonale Vaudoise?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Banque Cantonale Vaudoise. 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. 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 Banque Cantonale Vaudoise, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SWX:BCVN Earnings and Revenue Growth April 13th 2022

We note that hedge funds don't have a meaningful investment in Banque Cantonale Vaudoise. State of Vaud is currently the company's largest shareholder with 67% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 1.6% and 1.2% of the shares outstanding respectively, UBS Asset Management and The Vanguard Group, Inc. are the second and third largest shareholders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Banque Cantonale Vaudoise

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Banque Cantonale Vaudoise. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Banque Cantonale Vaudoise (including 2 which don't sit too well with us) .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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