Yahoo Finance Banque Cantonale de Genève SA's (VTX:BCGE) market cap surged CHF78m last week, state or government who have a lot riding on the company were rewarded
Key Insights
Significant control over Banque Cantonale de Genève by state or government implies that the general public has more power to influence management and governance-related decisions
66% of the business is held by the top 2 shareholders
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Banque Cantonale de Genève SA (VTX:BCGE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are state or government with 66% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, state or government were the biggest beneficiaries of last week’s 3.8% gain.
In the chart below, we zoom in on the different ownership groups of Banque Cantonale de Genève.
Check out our latest analysis for Banque Cantonale de Genève
What Does The Institutional Ownership Tell Us About Banque Cantonale de Genève?
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.
As you can see, institutional investors have a fair amount of stake in Banque Cantonale de Genève. 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. 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 Banque Cantonale de Genève, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Banque Cantonale de Genève. Our data shows that State of Geneva is the largest shareholder with 45% of shares outstanding. For context, the second largest shareholder holds about 21% of the shares outstanding, followed by an ownership of 6.0% by the third-largest shareholder.
After doing some more digging, we found that the top 2 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Banque Cantonale de Genève
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.
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.
Our most recent data indicates that insiders own less than 1% of Banque Cantonale de Genève SA. Keep in mind that it's a big company, and the insiders own CHF11m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
With a 25% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Banque Cantonale de Genève. 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.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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.
