mBank S.A. (WSE:MBK) surges 4.2%; public companies who own 69% shares profited along with institutions

Key Insights

• The considerable ownership by public companies in mBank indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Commerzbank AG with a 69% stake
• Institutions own 21% of mBank

Every investor in mBank S.A. (WSE:MBK) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 69% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While public companies were the group that benefitted the most from last week’s zł1.0b market cap gain, institutions too had a 21% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about mBank.

Check out our latest analysis for mBank

What Does The Institutional Ownership Tell Us About mBank?

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 mBank. 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. 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 mBank's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in mBank. The company's largest shareholder is Commerzbank AG, with ownership of 69%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 5.2% and 3.6% of the shares outstanding respectively, Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. and Powszechne Towarzystwo Emerytalne PZU SA 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 mBank

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that mBank 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 zł22m worth of shares. 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-- including retail investors -- own 10% stake in the company, and hence can't easily be ignored. 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

It appears to us that public companies own 69% of mBank. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - mBank has 1 warning sign we think 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.