Private equity firms who have a significant stake must be disappointed along with institutions after Orange Polska S.A.'s (WSE:OPL) market cap dropped by zł407m

Key Insights

• The considerable ownership by private equity firms in Orange Polska indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Innovacom Gestion with a 51% stake
• Institutions own 38% of Orange Polska

A look at the shareholders of Orange Polska S.A. (WSE:OPL) can tell us which group is most powerful. With 51% stake, private equity firms possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions who own 38% came under pressure after market cap dropped to zł10b last week,private equity firms took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Orange Polska.

See our latest analysis for Orange Polska

What Does The Institutional Ownership Tell Us About Orange Polska?

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 the register, especially if they are growing.

Orange Polska already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Orange Polska's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Orange Polska. The company's largest shareholder is Innovacom Gestion, with ownership of 51%. This implies that they have majority interest control of the future of the company. With 8.0% and 5.6% of the shares outstanding respectively, Allianz Asset Management GmbH and Goldman Sachs Asset Management, L.P. are the second and third largest shareholders.

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 Orange Polska

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our data suggests that insiders own under 1% of Orange Polska S.A. in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own zł271k worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in Orange Polska. 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

Private equity firms hold a 51% stake in Orange Polska. This suggests they can be influential in key policy decisions. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Orange Polska you should know about.

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.

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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.