SEG Suisse Estate Group SA's (BRN:SEGN) most bullish insider is Member of Management Board Cedric Leimer, and their holdings value went up by 46% last week

By
Simply Wall St
Published
December 22, 2021
BRSE:SEGN
Source: Shutterstock

To get a sense of who is truly in control of SEG Suisse Estate Group SA (BRN:SEGN), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 64% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 46% gain.

Let's take a closer look to see what the different types of shareholders can tell us about SEG Suisse Estate Group.

View our latest analysis for SEG Suisse Estate Group

ownership-breakdown
BRSE:SEGN Ownership Breakdown December 22nd 2021

What Does The Lack Of Institutional Ownership Tell Us About SEG Suisse Estate Group?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. SEG Suisse Estate Group's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

earnings-and-revenue-growth
BRSE:SEGN Earnings and Revenue Growth December 22nd 2021

We note that hedge funds don't have a meaningful investment in SEG Suisse Estate Group. Our data suggests that Cedric Leimer, who is also the company's Member of Management Board, holds the most number of shares at 23%. When an insider holds a sizeable amount of a company's stock, investors consider it as a positive sign because it suggests that insiders are willing to have their wealth tied up in the future of the company. For context, the second largest shareholder holds about 23% of the shares outstanding, followed by an ownership of 20% by the third-largest shareholder. Interestingly, the second-largest shareholder, Michel Niklaus is also Member of Management Board, again, pointing towards strong insider ownership amongst the company's top shareholders.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of SEG Suisse Estate 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.

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 the majority of SEG Suisse Estate Group SA. This means they can collectively make decisions for the company. So they have a CHF102m stake in this CHF158m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 15% stake in SEG Suisse Estate Group. 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 20%, of the SEG Suisse Estate 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:

It's always worth thinking about the different groups who own shares in a company. But to understand SEG Suisse Estate Group better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with SEG Suisse Estate Group (including 1 which is potentially serious) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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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