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- SWX:MOVE
Medacta Group SA's (VTX:MOVE) most bullish insider, CEO Francesco Siccardi must be pleased with the recent 4.7% gain
Key Insights
- Significant insider control over Medacta Group implies vested interests in company growth
- The top 3 shareholders own 59% of the company
- 17% of Medacta Group is held by Institutions
If you want to know who really controls Medacta Group SA (VTX:MOVE), then you'll have to look at the makeup of its share registry. With 70% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Clearly, insiders benefitted the most after the company's market cap rose by CHF104m last week.
Let's delve deeper into each type of owner of Medacta Group, beginning with the chart below.
See our latest analysis for Medacta Group
What Does The Institutional Ownership Tell Us About Medacta Group?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Medacta Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Medacta Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Medacta Group. Looking at our data, we can see that the largest shareholder is the CEO Francesco Siccardi with 20% of shares outstanding. The second and third largest shareholders are Alessandro Siccardi and Maria Siccardi Tonolli, with an equal amount of shares to their name at 20%. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 59% stake.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Medacta Group
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.
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 the majority of Medacta Group SA. This means they can collectively make decisions for the company. Insiders own CHF1.6b worth of shares in the CHF2.3b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.
General Public Ownership
With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Medacta Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Medacta Group better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Medacta Group you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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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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.
About SWX:MOVE
Medacta Group
Develops, manufactures, and distributes orthopedic and neurosurgical medical devices Europe, North America, the Asia-Pacific, and internationally.
Excellent balance sheet with reasonable growth potential.