Yahoo Finance Romande Energie Holding SA's (VTX:HREN) top owners are state or government with 46% stake, while 35% is held by individual investors
Key Insights
The considerable ownership by state or government in Romande Energie Holding indicates that they collectively have a greater say in management and business strategy
51% of the business is held by the top 2 shareholders
To get a sense of who is truly in control of Romande Energie Holding SA (VTX:HREN), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are state or government with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 35% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Romande Energie Holding.
See our latest analysis for Romande Energie Holding
What Does The Institutional Ownership Tell Us About Romande Energie Holding?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Romande Energie Holding already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Romande Energie Holding, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Romande Energie Holding. State of Vaud is currently the company's largest shareholder with 43% of shares outstanding. With 7.7% and 4.4% of the shares outstanding respectively, Groupe E SA and Credit Suisse Investment Foundation are the second and third largest shareholders.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.
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. 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 Romande Energie 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. 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.
We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.
General Public Ownership
With a 35% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Romande Energie Holding. 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
We can see that Private Companies own 7.7%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
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. To that end, you should be aware of the 1 warning sign we've spotted with Romande Energie Holding .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
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