Painful week for state or government invested in Permanent TSB Group Holdings plc (ISE:PTSB) after 7.2% drop, institutions also suffered losses

Key Insights

• The considerable ownership by state or government in Permanent TSB Group Holdings indicates that they collectively have a greater say in management and business strategy
• Department of Finance, Ireland owns 62% of the company
• 25% of Permanent TSB Group Holdings is held by Institutions

To get a sense of who is truly in control of Permanent TSB Group Holdings plc (ISE:PTSB), it is important to understand the ownership structure of the business. We can see that state or government own the lion's share in the company with 62% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 7.2% decrease in the stock price last week, state or government suffered the most losses, but institutions who own 25% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Permanent TSB Group Holdings.

View our latest analysis for Permanent TSB Group Holdings

What Does The Institutional Ownership Tell Us About Permanent TSB Group Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Permanent TSB Group Holdings. 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. 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 Permanent TSB Group Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Permanent TSB Group Holdings. Our data shows that Department of Finance, Ireland is the largest shareholder with 62% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 17% and 3.1% of the shares outstanding respectively, The Royal Bank Of Scotland plc, Asset Management Arm and Janus Henderson Group plc are the second and third largest shareholders.

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 Permanent TSB Group Holdings

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.

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.

Our information suggests that Permanent TSB Group Holdings plc insiders own under 1% of the company. It appears that the board holds about €124k worth of stock. This compares to a market capitalization of €884m. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Permanent TSB Group Holdings. 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 example, we've discovered 3 warning signs for Permanent TSB Group Holdings (1 shouldn't be ignored!) that you should be aware of before investing here.

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. 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.