Insiders with their considerable ownership were the key benefactors as Ypsomed Holding AG (VTX:YPSN) touches CHF2.6b market cap

Key Insights

• Insiders appear to have a vested interest in Ypsomed Holding's growth, as seen by their sizeable ownership
• 67% of the company is held by a single shareholder (H. C. Michel)
• Institutions own 16% of Ypsomed Holding

To get a sense of who is truly in control of Ypsomed Holding AG (VTX:YPSN), it is important to understand the ownership structure of the business. With 68% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, insiders benefitted the most after the company's market cap rose by CHF128m last week.

In the chart below, we zoom in on the different ownership groups of Ypsomed Holding.

Check out our latest analysis for Ypsomed Holding

What Does The Institutional Ownership Tell Us About Ypsomed Holding?

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.

We can see that Ypsomed Holding 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 Ypsomed Holding, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Ypsomed Holding. The company's largest shareholder is H. C. Michel, with ownership of 67%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. ZKB Asset Management is the second largest shareholder owning 7.3% of common stock, and Premier Fund Managers Limited holds about 2.1% of the company stock. In addition, we found that Simon Michel, the CEO has 1.2% of the shares allocated to their name.

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 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 Ypsomed Holding

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.

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.

Our information suggests that insiders own more than half of Ypsomed Holding AG. This gives them effective control of the company. Given it has a market cap of CHF2.6b, that means insiders have a whopping CHF1.8b worth of shares in their own names. 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 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ypsomed Holding. 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 Ypsomed Holding better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Ypsomed Holding .

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.