CEZ, a. s.'s (SEP:CEZ) top owners are state or government with 70% stake, while 21% is held by individual investors

Key Insights

• Significant control over CEZ a. s by state or government implies that the general public has more power to influence management and governance-related decisions
• 70% of the company is held by a single shareholder (Czech Republic)
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls CEZ, a. s. (SEP:CEZ), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 70% to be precise, is state or government. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And individual investors on the other hand have a 21% ownership in the company.

In the chart below, we zoom in on the different ownership groups of CEZ a. s.

Check out our latest analysis for CEZ a. s

What Does The Institutional Ownership Tell Us About CEZ a. s?

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.

We can see that CEZ a. s does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see CEZ a. s' historic earnings and revenue below, but keep in mind there's always more to the story.

CEZ a. s is not owned by hedge funds. Czech Republic is currently the company's largest shareholder with 70% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Belviport Trading Ltd. is the second largest shareholder owning 2.9% of common stock, and PPF banka a.s., Asset Management Arm holds about 1.4% 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of CEZ a. s

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.

Our information suggests that CEZ, a. s. insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It is a very large company, so it would be surprising to see insiders own a large proportion of the company. Though their holding amounts to less than 1%, we can see that board members collectively own Kč73m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 21% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand CEZ a. s better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with CEZ a. s , and understanding them should be part of your investment process.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.