State or government are Banque Cantonale Vaudoise's (VTX:BCVN) biggest owners and were hit after market cap dropped CHF378m

Key Insights

• Banque Cantonale Vaudoise's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• 67% of the company is held by a single shareholder (State of Vaud)
• Institutions own 11% of Banque Cantonale Vaudoise

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. The group holding the most number of shares in the company, around 67% to be precise, is state or government. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, state or government as a group endured the highest losses last week after market cap fell by CHF378m.

Let's delve deeper into each type of owner of Banque Cantonale Vaudoise, beginning with the chart below.

Check out our latest analysis for Banque Cantonale Vaudoise

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

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.

Banque Cantonale Vaudoise already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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.

We note that hedge funds don't have a meaningful investment in Banque Cantonale Vaudoise. The company's largest shareholder is State of Vaud, with ownership of 67%. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 2.1% and 1.6% of the stock.

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. 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.

Our information suggests that Banque Cantonale Vaudoise insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own CHF20m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Banque Cantonale Vaudoise. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Ultimately the future is most important. You can access this free report on analyst forecasts for 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.