Key Insights

• Significant control over Forbo Holding by retail investors implies that the general public has more power to influence management and governance-related decisions

• 50% of the business is held by the top 9 shareholders

• Insider ownership in Forbo Holding is 33%

Every investor in Forbo Holding AG (VTX:FORN) should be aware of the most powerful shareholder groups. We can see that retail investors own the lion's share in the company with 36% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual insiders make up 33% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

Let's delve deeper into each type of owner of Forbo Holding, beginning with the chart below.

Check out our latest analysis for Forbo Holding

What Does The Institutional Ownership Tell Us About Forbo 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.

As you can see, institutional investors have a fair amount of stake in Forbo Holding. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Forbo Holding's earnings history below. Of course, the future is what really matters.

Forbo Holding is not owned by hedge funds. Michael Pieper is currently the company's largest shareholder with 29% of shares outstanding. UBS Asset Management AG is the second largest shareholder owning 5.2% of common stock, and This Schneider holds about 3.2% of the company stock. This Schneider, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.

We did some more digging and found that 9 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Forbo Holding

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.