Temenos AG (VTX:TEMN) institutional owners may be pleased with recent gains after 12% loss over the past year

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Temenos AG (VTX:TEMN) institutional owners may be pleased with recent gains after 12% loss over the past year

Significantly high institutional ownership implies Temenos’ stock price is sensitive to their trading actions

53% of the business is held by the top 6 shareholders

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To get a sense of who is truly in control of Temenos AG (VTX:TEMN), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are institutions with 60% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Last week’s CHF234m market cap gain would probably be appreciated by institutional investors, especially after a year of 12% losses.

Let’s delve deeper into each type of owner of Temenos, beginning with the chart below.

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SWX:TEMN Ownership Breakdown January 28th 2025

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.

Temenos already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Temenos’ earnings history below. Of course, the future is what really matters.

SWX:TEMN Earnings and Revenue Growth January 28th 2025

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Temenos is not owned by hedge funds. Our data shows that BNP Paribas, Private & Investment Banking Investments is the largest shareholder with 14% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 13% and 8.0%, of the shares outstanding, respectively.

On further inspection, we found that more than half the company’s shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

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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. 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.

It seems insiders own a significant proportion of Temenos AG. It is very interesting to see that insiders have a meaningful CHF1.2b stake in this CHF5.6b business. It is good to see this level of investment. You can

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The general public, who are usually individual investors, hold a 18% stake in Temenos. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the

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.

Ultimately the future is most important. You can access this free

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.

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

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with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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#Temenos #VTXTEMN #institutional #owners #pleased #gains #loss #year

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