Highlight Event and Entertainment AG (VTX:HLEE) is mostly owned by private companies with a 34% stake, while 27% is held by insiders.
Key Insights
-
Significant control over event and entertainment by private companies means that the general public has more power to influence decisions related to management and governance.
-
A total of 3 investors have a majority stake in the company with 62% ownership
-
Highlight Event and Entertainment’s internal ownership is 27%
A look at Highlight Event and Entertainment AG (VTX:HLEE) shareholders can tell us which group is more powerful. And the group that holds the largest share of the pie is private companies with 34% ownership. In other words, the group faces maximum upside potential (or downside risk).
Individual insiders, on the other hand, account for 27% of company shareholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
Let’s dive deeper into each type of Highlight Event and Entertainment owner, starting with the chart below.
Check out our latest review for Highlight Event and Entertainment
What does institutional ownership tell us about marquee events and entertainment?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock when it is included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Since institutions only own a small portion of Highlight Event and Entertainment, many may not have spent much time considering the stock. But it’s clear that some have; and they liked it enough to buy. If the company is growing earnings, it could indicate that it’s just starting to catch the attention of these deep-pocketed investors. It’s not uncommon to see a big rise in the stock price if multiple institutional investors are trying to buy a stock at the same time. So check out the historical earnings trajectory below, but keep in mind that it’s the future that matters most.
Highlight Event and Entertainment is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is CEO Bernhard Burgener with 24% of the outstanding shares. In comparison, the second and third largest shareholders hold around 20% and 18% of the shares.
After doing some further investigation, we discovered that the top three shareholders collectively control more than half of the company’s shares, which implies that they have considerable power to influence the company’s decisions.
While studying institutional ownership of a company can add value to your research, it’s also a good practice to research analyst recommendations to better understand a stock’s expected performance. As far as we can tell, there’s no analyst coverage of the company, so it’s likely flying under the radar.
In-house event ownership and featured entertainment
The definition of company insiders can be subjective and varies between jurisdictions. Our data reflects individual insiders, capturing board members at a minimum. Company management runs the business, but the CEO will report to the board, even if he or she is a member of it.
Insider ownership is positive when it signals that leadership is 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 information suggests that insiders hold a significant stake in Highlight Event and Entertainment AG. Insiders own CHF29m worth of shares in the CHF107m company. It’s great to see insiders so invested in the business. It may be worth checking to see whether these insiders have been buying recently.
General Public Property
With a 12% ownership, the general public, comprised primarily of individual investors, has some degree of influence over Highlight Event and Entertainment. While this group can’t necessarily call the shots, they can certainly have a real influence on how the company is run.
Private equity ownership
With a 26% ownership, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some may like this because private equity is sometimes an activist holding management accountable. But other times, private equity is selling, having taken the company public.
Private company ownership
It appears that private companies own 34% of Highlight Event and Entertainment’s shares. It’s hard to draw any conclusions from this fact alone, so it’s worth looking into 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.
Next steps:
I find it very interesting to look at who exactly owns a company. But to really gain insight, we need to consider other information as well. Like risks, for example. Every company has them, and we identify them. 3 Warning Signs for High-Profile Events and Entertainment (2 of which make us uncomfortable!) that you should know.
Clear this may not be the best stock to buy. So take a look at this free free list of interesting companies.
NB: The figures in this article are calculated using data from the last twelve months, which refers to the 12-month period ending on the last date of the month in which the financial statement is dated. This may not be consistent with the figures in the annual report for the full year.
Have feedback on this article? Concerned about the content? Get in touch directly with us. Alternatively, email editorial-team (at) simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your objectives or financial situation. Our aim is to bring you long-term focused analysis, driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Contact us directly. Alternatively, email editorial-team@simplywallst.com
