Key Insights
Highlights: Greater control by private companies over events and entertainment means that the general public has more power to influence management and governance decisions.
Together, the three investors hold a majority stake in the company with 62% ownership.
Insider ownership of Highlight Events & Entertainment is 27%
A look at the shareholders of Highlight Events & Entertainment AG (VTX:HLEE) can tell us which group is most powerful. And the group with the largest share is the Private Sector, with an ownership of 34%. In other words, this group faces the greatest upside potential (and downside risk).
Meanwhile, individual insiders make up 27% of the company’s shareholders.Large companies usually have institutions as shareholders, while smaller companies usually have insiders owning shares.
Let’s take a closer look at each type of owner at Highlight Events and Entertainment in the table below.
Check out the latest analysis of Highlights Events and Entertainment
Ownership Breakdown
What does institutional ownership say about featured events and entertainment?
Institutions typically compare their own performance against a benchmark when reporting to their own investors, so when a stock is included in a major index, they often increase their interest in that stock. You can expect most companies to have some institutional investors on the register, especially if they are growing.
Institutional investors only hold small shares in Highlight Events & Entertainment, so many may not have spent much time considering the stock. However, it’s clear that some did and liked the stock, which led them to buy. If the company’s earnings are growing, it could be that it’s just starting to attract the attention of deeper pockets. It’s not uncommon to see a large share price increase if multiple institutional investors are looking to buy a stock at the same time. So check out the past earnings trajectory shown below, but remember that it’s the future that matters most.
Revenue and Revenue Growth
Highlight Events 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 shares outstanding. In comparison, the second and third largest shareholders hold about 20% and 18% of the shares, respectively.
After further investigation, we found that the top three shareholders collectively own more than half of the company’s shares, giving them considerable power to influence company decisions.
While studying institutional ownership for a company can add value to your research, it is also a good idea to research analyst recommendations to get a deeper understand of a stock’s expected performance. As far as we can tell, there is no analyst coverage of the company, so it’s probably not under the radar.
The story continues
Insider Ownership of Highlight Events and Entertainment
The definition of a company insider can be subjective and varies between jurisdictions. Our data reflects individual insiders, and includes, at a minimum, directors. While management runs the company, the CEO is accountable to the board of directors even if he or she is a member of the board.
Insider ownership can be a positive if it signals management are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company, which can be a negative in some circumstances.
Our information indicates that insiders hold a significant amount of shares in Highlight Events and Entertainment AG. Insiders hold CHF 29m worth of shares in a CHF 107m company. It’s great to see insiders are so invested in the business, it might be worth checking if they have been buying recently.
General public property
With an ownership of 12%, the general public, mainly retail investors, have some degree of influence over Highlight Events and Entertainment, and while this group doesn’t necessarily have the decision-making power, they can certainly have a real influence over how the company is run.
Private Equity Ownership
With a 26% ownership stake, private equity firms are in a position to play a role in shaping the company’s strategy with a focus on value creation. Some may welcome this position, as private equity can sometimes be activists holding management accountable. But private equity can also sell shares publicly.
Private Ownership
It appears that 34% of Hilite Events and Entertainment shares are owned by private companies. It’s hard to draw any conclusions from this fact alone, so it’s worth looking into who owns these private companies. It’s also possible that insiders or other parties have an interest in public companies via another private company.
Next steps:
It’s very interesting to find out who exactly owns a company, but to gain real insight you need to consider other information as well, such as risks: Every company has risks, and we’ve spotted 3 warning signs for Highlight Events & Entertainment (of which 2 are worrying!) you should know about.
Of course, it may not be the best stock to buy, so take a peek at this free list of interesting companies.
Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term 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 of the stocks mentioned herein.
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