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Private companies invested in Peach Property Group AG (VTX:PEAN) copped the brunt of last week's CHF24m market cap decline
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 4 investors have a majority stake in the company with 53% ownership
- Institutions own 26% of Peach Property Group
If you want to know who really controls Peach Property Group AG (VTX:PEAN), then you'll have to look at the makeup of its share registry. With 44% 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).
And last week, private companies endured the biggest losses as the stock fell by 11%.
Let's take a closer look to see what the different types of shareholders can tell us about Peach Property Group.
Check out our latest analysis for Peach Property Group
What Does The Institutional Ownership Tell Us About Peach Property Group?
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.
We can see that Peach Property Group 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. 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 Peach Property Group's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Peach Property Group. Peak Investment S.À R.L is currently the largest shareholder, with 27% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 9.4% and 8.9%, of the shares outstanding, respectively.
Our research also brought to light the fact that roughly 53% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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.
Our most recent data indicates that insiders own less than 1% of Peach Property Group AG. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It has a market capitalization of just CHF199m, and the board has only CHF1.5m worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.
General Public Ownership
With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Peach Property Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
Our data indicates that Private Companies hold 44%, of the company's shares. 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:
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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Peach Property Group (of which 2 don't sit too well with us!) you should know about.
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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About SWX:PEAN
Peach Property Group
Engages in investment and development of residential real estate properties in Germany and Switzerland.
Good value low.