Stock Analysis

Komercní banka, a.s.'s (SEP:KOMB) top owners are public companies with 61% stake, while 26% is held by individual investors

SEP:KOMB
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Key Insights

  • Komercní banka's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The largest shareholder of the company is Société Générale Société anonyme with a 61% stake
  • 14% of Komercní banka is held by Institutions

To get a sense of who is truly in control of Komercní banka, a.s. (SEP:KOMB), it is important to understand the ownership structure of the business. With 61% stake, public companies 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).

Meanwhile, individual investors make up 26% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Komercní banka.

See our latest analysis for Komercní banka

ownership-breakdown
SEP:KOMB Ownership Breakdown November 16th 2023

What Does The Institutional Ownership Tell Us About Komercní banka?

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.

As you can see, institutional investors have a fair amount of stake in Komercní banka. 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 Komercní banka's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEP:KOMB Earnings and Revenue Growth November 16th 2023

We note that hedge funds don't have a meaningful investment in Komercní banka. Société Générale Société anonyme is currently the largest shareholder, with 61% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Nikko Asset Management Co., Ltd. is the second largest shareholder owning 2.6% of common stock, and The Vanguard Group, Inc. holds about 1.6% of the company stock.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Komercní banka

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public-- including retail investors -- own 26% stake in the company, and hence can't easily be ignored. 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

We can see that public companies hold 61% of the Komercní banka shares on issue. 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 Komercní banka better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Komercní banka (including 1 which makes us a bit uncomfortable) .

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.

Valuation is complex, but we're helping make it simple.

Find out whether Komercní banka is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.