Stock Analysis

With 32% ownership, MONETA Money Bank, a.s. (SEP:MONET) has piqued the interest of institutional investors

SEP:MONET
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Key Insights

  • Institutions' substantial holdings in MONETA Money Bank implies that they have significant influence over the company's share price
  • 39% of the business is held by the top 25 shareholders
  • 10% of MONETA Money Bank is held by insiders

To get a sense of who is truly in control of MONETA Money Bank, a.s. (SEP:MONET), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 32% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's delve deeper into each type of owner of MONETA Money Bank, beginning with the chart below.

View our latest analysis for MONETA Money Bank

ownership-breakdown
SEP:MONET Ownership Breakdown December 23rd 2023

What Does The Institutional Ownership Tell Us About MONETA Money Bank?

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.

MONETA Money Bank 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 MONETA Money Bank's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SEP:MONET Earnings and Revenue Growth December 23rd 2023

MONETA Money Bank is not owned by hedge funds. Pavel Tykac is currently the largest shareholder, with 10% of shares outstanding. With 6.1% and 4.3% of the shares outstanding respectively, J&T Investicna SPLOCNOST and Banka Creditas A.S., Asset Management Arm are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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.

Insider Ownership Of MONETA Money Bank

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of MONETA Money Bank, a.s.. It is very interesting to see that insiders have a meaningful Kč4.9b stake in this Kč47b business. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 28% 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.

Private Company Ownership

Our data indicates that Private Companies hold 30%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for MONETA Money Bank you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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 MONETA Money Bank 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.

About SEP:MONET

MONETA Money Bank

MONETA Money Bank, a.s., together with its subsidiaries, provides banking and financial products and services to retail customers, small and medium-sized enterprises, corporate clients, and financial and public sector institutions in the Czech Republic.

Flawless balance sheet, good value and pays a dividend.