Stock Analysis

Adecco Group AG (VTX:ADEN) most popular amongst individual investors who own 52% of the shares, institutions hold 44%

SWX:ADEN
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Key Insights

  • The considerable ownership by individual investors in Adecco Group indicates that they collectively have a greater say in management and business strategy
  • A total of 25 investors have a majority stake in the company with 43% ownership
  • Institutional ownership in Adecco Group is 44%

If you want to know who really controls Adecco Group AG (VTX:ADEN), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Institutions, on the other hand, account for 44% of the company's stockholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's delve deeper into each type of owner of Adecco Group, beginning with the chart below.

View our latest analysis for Adecco Group

ownership-breakdown
SWX:ADEN Ownership Breakdown November 29th 2024

What Does The Institutional Ownership Tell Us About Adecco Group?

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 Adecco Group 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Adecco Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SWX:ADEN Earnings and Revenue Growth November 29th 2024

Adecco Group is not owned by hedge funds. Silchester International Investors LLP is currently the company's largest shareholder with 10% of shares outstanding. With 6.5% and 5.2% of the shares outstanding respectively, UBS Asset Management AG and BlackRock, 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 Adecco Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own some shares in Adecco Group AG. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CHF157m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 52% stake in Adecco Group, suggesting it is a fairly popular stock. 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 Adecco Group better, we need to consider many other factors. For instance, we've identified 3 warning signs for Adecco Group (2 shouldn't be ignored) that you should be aware of.

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.