Following recent decline, Bachem Holding AG's (VTX:BANB) top shareholder Top Key Executive Peter Grogg sees holdings value drop by 4.9%

Key Insights

• Bachem Holding's significant insider ownership suggests inherent interests in company's expansion
• Peter Grogg owns 58% of the company
• Institutions own 19% of Bachem Holding

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A look at the shareholders of Bachem Holding AG (VTX:BANB) can tell us which group is most powerful. The group holding the most number of shares in the company, around 58% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, insiders as a group endured the highest losses after market cap fell by CHF236m.

Let's take a closer look to see what the different types of shareholders can tell us about Bachem Holding.

View our latest analysis for Bachem Holding

What Does The Institutional Ownership Tell Us About Bachem Holding?

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.

As you can see, institutional investors have a fair amount of stake in Bachem Holding. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Bachem Holding'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 Bachem Holding. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Bachem Holding's case, its Top Key Executive, Peter Grogg, is the largest shareholder, holding 58% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.0% and 3.0% of the stock.

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 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 Bachem Holding

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems that insiders own more than half the Bachem Holding AG stock. This gives them a lot of power. That means insiders have a very meaningful CHF2.7b stake in this CHF4.6b business. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public-- including retail investors -- own 23% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

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. Be aware that Bachem Holding is showing 2 warning signs in our investment analysis , you should know about...

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.