Stock Analysis

Painful week for retail investors invested in Allreal Holding AG (VTX:ALLN) after 3.5% drop, institutions also suffered losses

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Key Insights

  • Allreal Holding's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The top 25 shareholders own 50% of the company
  • Insiders own 10% of Allreal Holding

To get a sense of who is truly in control of Allreal Holding AG (VTX:ALLN), 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 48% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions who own 36% came under pressure after market cap dropped to CHF2.4b last week,retail investors took the most losses.

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

Check out our latest analysis for Allreal Holding

SWX:ALLN Ownership Breakdown March 29th 2023

What Does The Institutional Ownership Tell Us About Allreal 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.

Allreal Holding 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. 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 Allreal Holding's earnings history below. Of course, the future is what really matters.

SWX:ALLN Earnings and Revenue Growth March 29th 2023

Hedge funds don't have many shares in Allreal Holding. Looking at our data, we can see that the largest shareholder is Credit Suisse Asset Management (Switzerland) with 10% of shares outstanding. The second and third largest shareholders are Immosynergies Holding Sàrl and Plan Olivier, with an equal amount of shares to their name at 6.5%.

After doing some more digging, we found that the top 25 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Allreal 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.

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 maintain a significant holding in Allreal Holding AG. Insiders own CHF245m worth of shares in the CHF2.4b company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 48% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Allreal 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

It seems that Private Companies own 6.5%, of the Allreal Holding stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Case in point: We've spotted 1 warning sign for Allreal Holding 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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