Stock Analysis

What Kind Of Shareholders Hold The Majority In Sanok Rubber Company Spólka Akcyjna's (WSE:SNK) Shares?

WSE:SNK
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A look at the shareholders of Sanok Rubber Company Spólka Akcyjna (WSE:SNK) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

With a market capitalization of zł726m, Sanok Rubber Company Spólka Akcyjna is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Sanok Rubber Company Spólka Akcyjna.

Check out our latest analysis for Sanok Rubber Company Spólka Akcyjna

ownership-breakdown
WSE:SNK Ownership Breakdown January 22nd 2021

What Does The Institutional Ownership Tell Us About Sanok Rubber Company Spólka Akcyjna?

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.

We can see that Sanok Rubber Company Spólka Akcyjna 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. 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 Sanok Rubber Company Spólka Akcyjna's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
WSE:SNK Earnings and Revenue Growth January 22nd 2021

We note that hedge funds don't have a meaningful investment in Sanok Rubber Company Spólka Akcyjna. The company's largest shareholder is Aviva Powszechne Towarzystwo Emerytalne Aviva Santander S.A., with ownership of 14%. In comparison, the second and third largest shareholders hold about 12% and 11% of the stock. Marek Lecki, who is the third-largest shareholder, also happens to hold the title of Chairman of Supervisory Board.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Sanok Rubber Company Spólka Akcyjna

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. 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.

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 insiders maintain a significant holding in Sanok Rubber Company Spólka Akcyjna. Insiders have a zł118m stake in this zł726m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 40% ownership, the general public have some degree of sway over Sanok Rubber Company Spólka Akcyjna. 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. To that end, you should be aware of the 2 warning signs we've spotted with Sanok Rubber Company Spólka Akcyjna .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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