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Retail investors account for 58% of dormakaba Holding AG's (VTX:DOKA) ownership, while institutions account for 31%

Key Insights

  • Significant control over dormakaba Holding by retail investors implies that the general public has more power to influence management and governance-related decisions

  • 39% of the business is held by the top 25 shareholders

  • 11% of dormakaba Holding is held by insiders

If you want to know who really controls dormakaba Holding AG (VTX:DOKA), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 58% to be precise, is retail investors. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, institutions make up 31% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

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Let's take a closer look to see what the different types of shareholders can tell us about dormakaba Holding.

See our latest analysis for dormakaba Holding

ownership-breakdown
SWX:DOKA Ownership Breakdown January 13th 2024

What Does The Institutional Ownership Tell Us About dormakaba Holding?

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.

dormakaba Holding already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 dormakaba Holding, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SWX:DOKA Earnings and Revenue Growth January 13th 2024

Hedge funds don't have many shares in dormakaba Holding. Looking at our data, we can see that the largest shareholder is SEO Management AG with 8.1% of shares outstanding. The second and third largest shareholders are Stephanie Brecht-Bergen and Christine Mankel-Madaus, with an equal amount of shares to their name at 5.3%.

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 dormakaba Holding

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 a reasonable proportion of dormakaba Holding AG. It has a market capitalization of just CHF1.8b, and insiders have CHF206m worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 58% of dormakaba Holding shares. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand dormakaba Holding better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for dormakaba Holding 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.

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.