Stock Analysis

Peach Property Group AG's (VTX:PEAN) market cap dropped CHF22m last week; Private companies bore the brunt

SWX:PEAN
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Key Insights

  • Significant control over Peach Property Group by private companies implies that the general public has more power to influence management and governance-related decisions
  • A total of 5 investors have a majority stake in the company with 53% ownership
  • Institutional ownership in Peach Property Group is 27%

A look at the shareholders of Peach Property Group AG (VTX:PEAN) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to CHF196m last week, private companies would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of Peach Property Group, beginning with the chart below.

Check out our latest analysis for Peach Property Group

ownership-breakdown
SWX:PEAN Ownership Breakdown January 25th 2024

What Does The Institutional Ownership Tell Us About Peach Property 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.

Peach Property 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. 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 Peach Property Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SWX:PEAN Earnings and Revenue Growth January 25th 2024

Peach Property Group is not owned by hedge funds. Peak Investment S.À R.L is currently the largest shareholder, with 30% of shares outstanding. With 8.2% and 6.3% of the shares outstanding respectively, Arquus Capital N.V. and Horizon21 are the second and third largest shareholders.

On looking further, we found that 53% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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 Peach Property Group

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. 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 most recent data indicates that insiders own some shares in Peach Property Group AG. It has a market capitalization of just CHF196m, and insiders have CHF2.8m worth of shares, in their own names. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 29% 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.

Private Company Ownership

It seems that Private Companies own 43%, of the Peach Property Group stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 4 warning signs for Peach Property Group (1 is potentially serious) that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.