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A look at the shareholders of Varia US Properties AG (VTX:VARN) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.
Varia US Properties is a smaller company with a market capitalization of CHF330m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about VARN.
View our latest analysis for Varia US Properties
What Does The Institutional Ownership Tell Us About Varia US Properties?
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.
As you can see, institutional investors own 12% of Varia US Properties. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Varia US Properties's earnings history, below. Of course, the future is what really matters.
Hedge funds don't have many shares in Varia US Properties. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Varia US Properties
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to learn that insiders own shares in Varia US Properties AG. As individuals, the insiders collectively own CHF3.9m worth of the CHF330m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.