Stock Analysis

Here's What Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's (WSE:PKO) Shareholder Ownership Structure Looks Like

WSE:PKO
Source: Shutterstock

Every investor in Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna (WSE:PKO) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.

Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna has a market capitalization of zł37b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna.

View our latest analysis for Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna

ownership-breakdown
WSE:PKO Ownership Breakdown January 26th 2021

What Does The Institutional Ownership Tell Us About Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna?

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.

We can see that Powszechna Kasa Oszczednosci Bank Polski 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
WSE:PKO Earnings and Revenue Growth January 26th 2021

We note that hedge funds don't have a meaningful investment in Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna. The company's largest shareholder is Ministerstwo Skarbu Panstwa, with ownership of 29%. Meanwhile, the second and third largest shareholders, hold 8.1% and 7.4%, of the shares outstanding, respectively.

We did some more digging and found that 6 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna

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.

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 Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own zł1.2m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, with a 40% stake in the company, will not 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna better, we need to consider many other factors. For example, we've discovered 2 warning signs for Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna that you should be aware of before investing here.

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.

If you’re looking to trade Powszechna Kasa Oszczednosci Bank Polski Spólka Akcyjna, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


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