Key findings
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The significant shareholding of retail investors in Barry Callebaut suggests that they collectively have a greater say in the company’s management and strategy.
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The top 7 shareholders own 51% of the company
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The institutional share in Barry Callebaut is 32%
A look at the shareholders of Barry Callebaut AG (VTX:BARN) tells us which group is the most powerful. The group that owns the most shares in the company, around 33%, are retail investors. This means that this group benefits the most when the stock rises (or loses the most when there is a downturn).
Institutions now make up 32% of the company’s shareholders. Insiders often own a large portion of younger, smaller companies, while large companies are more likely to have institutions as shareholders.
In the following graphic we zoom in on the different ownership groups of Barry Callebaut.
Read our latest analysis on Barry Callebaut
What does institutional ownership tell us about Barry Callebaut?
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 their registry, especially if they’re growing.
Barry Callebaut already has institutions on its share registry. In fact, they own a sizeable stake in the company. This suggests a certain credibility among professional investors. But we cannot rely on this fact alone since institutions sometimes make bad investments, just like everyone else does. If multiple institutions change their minds on a stock at the same time, the share price can drop quickly. It is therefore worth taking a look at Barry Callebaut’s earnings history below. Of course, the future is what really matters.
We note that hedge funds do not make significant investments in Barry Callebaut. The company’s largest shareholder is Jacobs Holding AG with a 30% stake. Artisan Partners Limited Partnership and Renata Jacobs are the second and third largest shareholders with 5.6% and 5.0% of outstanding shares, respectively.
We also found that the seven largest shareholders own more than half of the share register and that there are some smaller shareholders that balance the interests of the larger shareholders to some extent.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you can look at forecasted growth quite easily.
Insider ownership of Barry Callebaut
While the exact definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately accountable to the board. However, it is not uncommon for managers to be board members, especially if they are a founder or CEO.
I think insider ownership is generally a good thing. However, in some cases it makes it harder for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to know that insiders own shares in Barry Callebaut AG. The insiders own a significant stake worth 413 million Swiss francs. Most would say that this shows a good alignment of interests between shareholders and the board of directors. Nevertheless, it might be worth checking whether these insiders have been selling.
Public property
The general public – including retail investors – owns 33% of the company’s shares and therefore cannot be ignored. While this group does not necessarily call the shots, it can certainly have a real influence on how the company is run.
Private equity ownership
With a 30% stake, private equity firms could influence Barry Callebaut’s board of directors. Sometimes we see private equity sticking around for the long term, but generally they have a shorter investment horizon and – as the name suggests – do not invest much in listed companies. After some time, they could look to sell their capital and deploy it elsewhere.
Next Steps:
It is always worth thinking about the different groups that own shares in a company. But to better understand Barry Callebaut, we need to consider many other factors. It is important to be aware that Barry Callebaut 3 warning signals in our investment analysis and two of them cannot be ignored…
If you’re like me, you might want to think about whether this company will grow or shrink. Luckily, you can check out this free report showing analyst forecasts for the future.
NB: The figures in this article are calculated using the last twelve months’ data, which refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the annual report.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
