Retail investors account for 55% of Chocoladefabriken Lindt & Sprüngli AG's (VTX:LISN) ownership, while institutions account for 34%

Key Insights

• Significant control over Chocoladefabriken Lindt & Sprüngli by retail investors implies that the general public has more power to influence management and governance-related decisions
• A total of 25 investors have a majority stake in the company with 39% ownership
• Institutional ownership in Chocoladefabriken Lindt & Sprüngli is 34%

To get a sense of who is truly in control of Chocoladefabriken Lindt & Sprüngli AG (VTX:LISN), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 55% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And institutions on the other hand have a 34% ownership in the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.

In the chart below, we zoom in on the different ownership groups of Chocoladefabriken Lindt & Sprüngli.

View our latest analysis for Chocoladefabriken Lindt & Sprüngli

What Does The Institutional Ownership Tell Us About Chocoladefabriken Lindt & Sprüngli?

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.

Chocoladefabriken Lindt & Sprüngli already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Chocoladefabriken Lindt & Sprüngli, (below). Of course, keep in mind that there are other factors to consider, too.

Chocoladefabriken Lindt & Sprüngli is not owned by hedge funds. Chocoladefabriken Lindt & Sprüngli AG, ESOP is currently the largest shareholder, with 9.0% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.9% and 3.9% of the stock.

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.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Chocoladefabriken Lindt & Sprüngli

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 can report that insiders do own shares in Chocoladefabriken Lindt & Sprüngli AG. The insiders have a meaningful stake worth CHF431m. we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 55% stake in Chocoladefabriken Lindt & Sprüngli, suggesting it is a fairly popular stock. 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:

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 like to dive deeper into how a company has performed in the past. You can find 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.