How Many Chocoladefabriken Lindt & Sprüngli AG (VTX:LISN) Shares Do Institutions Own?

By
Simply Wall St
Published
February 17, 2022
SWX:LISN
Source: Shutterstock

A look at the shareholders of Chocoladefabriken Lindt & Sprüngli AG (VTX:LISN) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.

Chocoladefabriken Lindt & Sprüngli is a pretty big company. It has a market capitalization of CHF25b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Chocoladefabriken Lindt & Sprüngli.

Check out our latest analysis for Chocoladefabriken Lindt & Sprüngli

ownership-breakdown
SWX:LISN Ownership Breakdown February 17th 2022

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.

We can see that Chocoladefabriken Lindt & Sprüngli 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Chocoladefabriken Lindt & Sprüngli's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
SWX:LISN Earnings and Revenue Growth February 17th 2022

Hedge funds don't have many shares in Chocoladefabriken Lindt & Sprüngli. Chocoladefabriken Lindt & Sprüngli AG, ESOP is currently the company's largest shareholder with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.0% and 3.2% of the 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

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.

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.

We can report that insiders do own shares in Chocoladefabriken Lindt & Sprüngli AG. Insiders own CHF682m worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public -- including retail investors -- own 57% of Chocoladefabriken Lindt & Sprüngli. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Chocoladefabriken Lindt & Sprüngli that you should be aware of.

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.

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