Stock Analysis

Is Koncar - distributivni i specijalni transformatori d.d. (ZGSE:KODT) Popular Amongst Insiders?

If you want to know who really controls Koncar - distributivni i specijalni transformatori d.d. (ZGSE:KODT), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.

Koncar - distributivni i specijalni transformatori d.d is a smaller company with a market capitalization of Kn713m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Koncar - distributivni i specijalni transformatori d.d.

Check out our latest analysis for Koncar - distributivni i specijalni transformatori d.d

ownership-breakdown
ZGSE:KODT Ownership Breakdown January 8th 2021

What Does The Institutional Ownership Tell Us About Koncar - distributivni i specijalni transformatori 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.

As you can see, institutional investors have a fair amount of stake in Koncar - distributivni i specijalni transformatori d.d. 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 Koncar - distributivni i specijalni transformatori d.d's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
ZGSE:KODT Earnings and Revenue Growth January 8th 2021

Koncar - distributivni i specijalni transformatori d.d is not owned by hedge funds. Koncar - Elektroindustrija d.d. is currently the company's largest shareholder with 53% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 7.3% and 3.9%, of the shares outstanding, respectively.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Koncar - distributivni i specijalni transformatori 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.

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 Koncar - distributivni i specijalni transformatori d.d.. Insiders have a Kn97m stake in this Kn713m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public holds a 26% stake in Koncar - distributivni i specijalni transformatori d.d. 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 53% of Koncar - distributivni i specijalni transformatori d.d. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Koncar - distributivni i specijalni transformatori d.d better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Koncar - distributivni i specijalni transformatori d.d (of which 1 makes us a bit uncomfortable!) you should know about.

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.

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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.
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About ZGSE:KODT

Koncar - distributivni i specijalni transformatori d.d

Together with its subsidiary, engages in the design, production, sale, and servicing of distribution, special, and medium power transformers.

Flawless balance sheet with solid track record.

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