Yahoo Finance Recent uptick might appease u-blox Holding AG (VTX:UBXN) institutional owners after losing 13% over the past year
Key Insights
Given the large stake in the stock by institutions, u-blox Holding's stock price might be vulnerable to their trading decisions
The top 25 shareholders own 45% of the company
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
Every investor in u-blox Holding AG (VTX:UBXN) should be aware of the most powerful shareholder groups. With 49% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Last week's CHF56m market cap gain would probably be appreciated by institutional investors, especially after a year of 13% losses.
In the chart below, we zoom in on the different ownership groups of u-blox Holding.
View our latest analysis for u-blox Holding
What Does The Institutional Ownership Tell Us About u-blox 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.
We can see that u-blox Holding does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see u-blox Holding's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in u-blox Holding. The company's largest shareholder is SEO Management AG, with ownership of 5.1%. Meanwhile, the second and third largest shareholders, hold 4.8% and 3.5%, of the shares outstanding, respectively.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of u-blox 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 most recent data indicates that insiders own some shares in u-blox Holding AG. As individuals, the insiders collectively own CHF19m worth of the CHF646m company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, who are usually individual investors, hold a 48% stake in u-blox Holding. 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. Be aware that u-blox Holding is showing 4 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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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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.
