Creotech Instruments S.A. (WSE:CRI) adds zł57m in market cap and insiders have a 41% stake in that gain

Key Insights

• Insiders appear to have a vested interest in Creotech Instruments' growth, as seen by their sizeable ownership
• The top 6 shareholders own 54% of the company
• 22% of Creotech Instruments is held by Institutions

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

A look at the shareholders of Creotech Instruments S.A. (WSE:CRI) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit zł528m market cap following a 11% gain in the stock.

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

Check out our latest analysis for Creotech Instruments

What Does The Institutional Ownership Tell Us About Creotech Instruments?

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 Creotech Instruments does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Creotech Instruments' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Creotech Instruments. Our data shows that Agencja Rozwoju Przemyslu S.A. is the largest shareholder with 11% of shares outstanding. The second and third largest shareholders are Grzegorz Brona and Pawel Kasprowicz, with an equal amount of shares to their name at 8.9%. Grzegorz Brona, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

We did some more digging and found that 6 of the top shareholders account for roughly 54% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Creotech Instruments

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 most recent data indicates that insiders own a reasonable proportion of Creotech Instruments S.A.. It has a market capitalization of just zł528m, and insiders have zł216m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 26% stake in Creotech Instruments. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 1 warning sign for Creotech Instruments that you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

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

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.