Stock Analysis

How Much Of Koncar - Elektroindustrija d.d. (ZGSE:KOEI) Do Institutions Own?

ZGSE:KOEI
Source: Shutterstock

The big shareholder groups in Koncar - Elektroindustrija d.d. (ZGSE:KOEI) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of Kn1.2b, Koncar - Elektroindustrija d.d is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Koncar - Elektroindustrija d.d.

View our latest analysis for Koncar - Elektroindustrija d.d

ownership-breakdown
ZGSE:KOEI Ownership Breakdown July 14th 2020

What Does The Institutional Ownership Tell Us About Koncar - Elektroindustrija d.d?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Koncar - Elektroindustrija d.d 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 Koncar - Elektroindustrija d.d's earnings history, below. Of course, the future is what really matters.

earnings-and-revenue-growth
ZGSE:KOEI Earnings and Revenue Growth July 14th 2020

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Koncar - Elektroindustrija d.d is not owned by hedge funds. Hrvatsko mirovinsko investicijsko drustvo d.o.o. is currently the largest shareholder, with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 17% and 16%, of the shares outstanding, respectively.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Koncar - Elektroindustrija d.d

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.

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.

We can see that insiders own shares in Koncar - Elektroindustrija d.d.. In their own names, insiders own Kn35m worth of stock in the Kn1.2b company. It is good to see some investment by insiders, but I usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public holds a 15% stake in KOEI. 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.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for Koncar - Elektroindustrija d.d that you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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’re looking to trade Koncar - Elektroindustrija d.d, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Valuation is complex, but we're here to simplify it.

Discover if KONCAR - Elektroindustrija d.d might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

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. 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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

About ZGSE:KOEI

KONCAR - Elektroindustrija d.d

Provides products, services, and solutions for power generation, power transmission and distribution, rail solutions and infrastructure, and digital solutions and platforms in Croatia.

Outstanding track record with flawless balance sheet.