Dottikon Es Holding AG's (VTX:DESN) stock price dropped 3.9% last week; private companies would not be happy

By
Simply Wall St
Published
January 18, 2022
SWX:DESN
Source: Shutterstock

A look at the shareholders of Dottikon Es Holding AG (VTX:DESN) can tell us which group is most powerful. With 57% stake, private companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders, who own 24% shares weren’t spared from last week’s CHF138m market cap drop, private companies as a group suffered the maximum losses

Let's delve deeper into each type of owner of Dottikon Es Holding, beginning with the chart below.

Check out our latest analysis for Dottikon Es Holding

ownership-breakdown
SWX:DESN Ownership Breakdown January 18th 2022

What Does The Institutional Ownership Tell Us About Dottikon Es Holding?

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.

As you can see, institutional investors have a fair amount of stake in Dottikon Es Holding. 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 Dottikon Es Holding's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SWX:DESN Earnings and Revenue Growth January 18th 2022

Hedge funds don't have many shares in Dottikon Es Holding. EVOLMA Holding AG is currently the company's largest shareholder with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. Markus Blocher is the second largest shareholder owning 11% of common stock, and Peter Grogg holds about 7.0% of the company stock. Markus Blocher, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Dottikon Es Holding

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.

It seems insiders own a significant proportion of Dottikon Es Holding AG. It has a market capitalization of just CHF3.4b, and insiders have CHF807m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dottikon Es Holding. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 57%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. For instance, we've identified 3 warning signs for Dottikon Es Holding (1 is a bit unpleasant) that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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