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

• 22% of Temenos is held by insiders

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.

See our latest analysis for Temenos

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.

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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