Stock Analysis

Institutions profited after Huber+Suhner AG's (VTX:HUBN) market cap rose CHF155m last week but retail investors profited the most

SWX:HUBN
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Key Insights

  • The considerable ownership by retail investors in Huber+Suhner indicates that they collectively have a greater say in management and business strategy
  • 42% of the business is held by the top 25 shareholders
  • Institutions own 38% of Huber+Suhner

A look at the shareholders of Huber+Suhner AG (VTX:HUBN) can tell us which group is most powerful. The group holding the most number of shares in the company, around 55% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 13% increase in the stock price last week, retail investors profited the most, but institutions who own 38% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Huber+Suhner, beginning with the chart below.

View our latest analysis for Huber+Suhner

ownership-breakdown
SWX:HUBN Ownership Breakdown March 10th 2024

What Does The Institutional Ownership Tell Us About Huber+Suhner?

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.

We can see that Huber+Suhner does have institutional investors; and they hold a good portion of the company's stock. 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 Huber+Suhner, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SWX:HUBN Earnings and Revenue Growth March 10th 2024

Huber+Suhner is not owned by hedge funds. Our data shows that EGS Beteiligungen AG is the largest shareholder with 9.2% of shares outstanding. With 6.1% and 3.4% of the shares outstanding respectively, Sylvia Hoffmann Suhner and The Vanguard Group, Inc. are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Huber+Suhner

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Shareholders would probably be interested to learn that insiders own shares in Huber+Suhner AG. This is a big company, so it is good to see this level of alignment. Insiders own CHF101m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public -- including retail investors -- own 55% of Huber+Suhner. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Huber+Suhner better, we need to consider many other factors. For example, we've discovered 1 warning sign for Huber+Suhner that you should be aware of before investing here.

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.

Valuation is complex, but we're here to simplify it.

Discover if Huber+Suhner might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.