Stadler Rail AG (VTX:SRAIL) stock most popular amongst retail investors who own 42%, while private equity firms hold 31% (2024)

Key Insights

• The considerable ownership by retail investors in Stadler Rail indicates that they collectively have a greater say in management and business strategy

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

• Insiders own 15% of Stadler Rail

To get a sense of who is truly in control of Stadler Rail AG (VTX:SRAIL), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 42% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And private equity firms on the other hand have a 31% ownership in the company.

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

See our latest analysis for Stadler Rail

What Does The Institutional Ownership Tell Us About Stadler Rail?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Stadler Rail does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Stadler Rail, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Stadler Rail. PCS Holding AG is currently the company's largest shareholder with 31% of shares outstanding. With 11% and 1.9% of the shares outstanding respectively, Peter Spuhler and The Vanguard Group, Inc. are the second and third largest shareholders.

We also observed that the top 9 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain 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 could look into forecast growth quite easily.

Insider Ownership Of Stadler Rail

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our information suggests that insiders maintain a significant holding in Stadler Rail AG. It is very interesting to see that insiders have a meaningful CHF490m stake in this CHF3.3b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Stadler Rail. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With an ownership of 31%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Stadler Rail you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.