Stock Analysis
BNP Paribas Bank Polska S.A.'s (WSE:BNP) market cap surged zł414m last week, public companies who have a lot riding on the company were rewarded
Key Insights
- The considerable ownership by public companies in BNP Paribas Bank Polska indicates that they collectively have a greater say in management and business strategy
- 81% of the company is held by a single shareholder (BNP Paribas SA)
- Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
A look at the shareholders of BNP Paribas Bank Polska S.A. (WSE:BNP) can tell us which group is most powerful. The group holding the most number of shares in the company, around 81% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Clearly, public companies benefitted the most after the company's market cap rose by zł414m last week.
Let's take a closer look to see what the different types of shareholders can tell us about BNP Paribas Bank Polska.
Check out our latest analysis for BNP Paribas Bank Polska
What Does The Institutional Ownership Tell Us About BNP Paribas Bank Polska?
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.
BNP Paribas Bank Polska 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of BNP Paribas Bank Polska, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in BNP Paribas Bank Polska. BNP Paribas SA is currently the company's largest shareholder with 81% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 2.5% and 0.6% of the stock.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of BNP Paribas Bank Polska
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 BNP Paribas Bank Polska S.A. insiders own under 1% of the company. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own zł2.7m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over BNP Paribas Bank Polska. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
We can see that public companies hold 81% of the BNP Paribas Bank Polska shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand BNP Paribas Bank Polska better, we need to consider many other factors. For instance, we've identified 2 warning signs for BNP Paribas Bank Polska that you should be aware of.
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.
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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.
About WSE:BNP
BNP Paribas Bank Polska
Provides a range of banking products and services to individual and institutional clients in Poland.