Major shareholders of Roche Holding AG (VTX:ROG) are individual investors with 49% ownership, institutions with 36%
Each investor of Roche Holding AG (VTX: ROG) should know the most powerful shareholder groups. We can see that individual investors hold the lion’s share of the company with 49% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
And institutions, on the other hand, have a 36% stake in the company. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders.
Let’s take a closer look at what different types of shareholders can tell us about Roche Holding.
What does institutional ownership tell us about Roche 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.
We can see that Roche Holding has many institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Roche Holding’s historic earnings and revenue below, but keep in mind there’s always more to tell.
We note that hedge funds have no significant investment in Roche Holding. Roche Long Term Foundation is currently the largest shareholder, with 6.7% of outstanding shares. In comparison, the second and third shareholders hold approximately 5.1% and 3.9% of the shares. Andre Hoffmann, who is the third shareholder, also holds the title of vice-president.
A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the register, suggesting a large group of small shareholders where no single shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Insider ownership of Roche Holding
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Shareholders would probably be interested to learn that insiders hold shares of Roche Holding AG. Insiders hold 24 billion francs worth of shares (at current prices). Good to see this level of investment. You can check here if these insiders have bought recently.
General public property
The general public, generally individual investors, owns 49% of the capital of Roche Holding. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private Company Ownership
It appears that private companies hold 6.7% of the shares of Roche Holding. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
It is always useful to think about the different groups that own shares in a company. But to better understand Roche Holding, we need to consider many other factors. Be aware that Roche Holding presents 1 warning sign in our investment analysis you should know…
At the end of the day the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.
Valuation is complex, but we help make it simple.
Find out if Roche Holding is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.