Could The Outdoorzy S.A. (WSE:OUT) Ownership Structure Tell Us Something Useful?

Every investor in Outdoorzy S.A. (WSE:OUT) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of zł6.4m, Outdoorzy is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it’s seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Outdoorzy.

Check out our latest analysis for Outdoorzy

WSE:OUT Ownership Summary, February 3rd 2020
WSE:OUT Ownership Summary, February 3rd 2020

What Does The Institutional Ownership Tell Us About Outdoorzy?

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.

Outdoorzy already has institutions on the share registry. Indeed, they own 28% of 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. 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 Outdoorzy, (below). Of course, keep in mind that there are other factors to consider, too.

WSE:OUT Income Statement, February 3rd 2020
WSE:OUT Income Statement, February 3rd 2020

We note that hedge funds don’t have a meaningful investment in Outdoorzy. Robinson Europe S.A. is currently the largest shareholder, with 50% of shares outstanding. ABS Investment SA is the second largest shareholder, holding 28%.

Further, we found that the top 2 shareholders have a combined ownership of 78% in the company, meaning that they are powerful enough to influence the decisions of the company.

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. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Outdoorzy

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.

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.

I can report that insiders do own shares in Outdoorzy S.A.. As individuals, the insiders collectively own zł319k worth of the zł6.4m company. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 17% ownership, the general public have some degree of sway over OUT. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

It appears to us that public companies own 50% of OUT. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Outdoorzy better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we’ve spotted with Outdoorzy (including 2 which is shouldn’t be ignored) .

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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