Painful week for state or government invested in Permanent TSB Group Holdings plc (ISE:PTSB) after 5.8% drop, institutions also suffered losses

Key Insights

• Permanent TSB Group Holdings' significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is Department of Finance, Ireland with a 57% stake
• Institutional ownership in Permanent TSB Group Holdings is 22%

If you want to know who really controls Permanent TSB Group Holdings plc (ISE:PTSB), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are state or government with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While the holdings of state or government took a hit after last week’s 5.8% price drop, institutions with their 22% holdings also suffered.

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?

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.

Permanent TSB Group Holdings 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 Permanent TSB Group Holdings' earnings history below. Of course, the future is what really matters.

Permanent TSB Group Holdings is not owned by hedge funds. Department of Finance, Ireland is currently the largest shareholder, with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 12% and 6.8%, 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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Permanent TSB Group Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 €121k worth of stock. This compares to a market capitalization of €802m. 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

The general public, who are usually individual investors, hold a 14% stake in Permanent TSB Group Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 6.8%, private equity firms could influence the Permanent TSB Group Holdings board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Permanent TSB Group Holdings (including 1 which is a bit concerning) .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.