State or government who hold 58% of Permanent TSB Group Holdings plc (ISE:PTSB) gained 3.6%, institutions profited as well

Key Insights

• Significant control over Permanent TSB Group Holdings by state or government implies that the general public has more power to influence management and governance-related decisions
• Department of Finance, Ireland owns 58% of the company
• Institutional ownership in Permanent TSB Group Holdings is 22%

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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. And the group that holds the biggest piece of the pie are state or government with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While state or government were the group that benefitted the most from last week’s €44m market cap gain, institutions too had a 22% share in those profits.

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

Check out 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.

As you can see, institutional investors have a fair amount of stake in Permanent TSB Group Holdings. 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.

Hedge funds don't have many shares in Permanent TSB Group Holdings. The company's largest shareholder is Department of Finance, Ireland, with ownership of 58%. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 12% and 6.8% of the stock.

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. 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 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.

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. Keep in mind that it's a big company, and the insiders own €189k worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in 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.

Private Equity Ownership

With an ownership of 6.8%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Permanent TSB Group Holdings better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Permanent TSB Group Holdings 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. 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.