Institutions profited after Mangata Holding S.A.'s (WSE:MGT) market cap rose zł57m last week but private equity firms profited the most

Key Insights

• The considerable ownership by private equity firms in Mangata Holding indicates that they collectively have a greater say in management and business strategy
• 63% of the company is held by a single shareholder (Avallon Sp. z o.o.)
• Institutions own 23% of Mangata Holding

Every investor in Mangata Holding S.A. (WSE:MGT) should be aware of the most powerful shareholder groups. With 63% stake, private equity firms possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Private equity firms gained the most after market cap touched zł475m last week, while institutions who own 23% also benefitted.

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

See our latest analysis for Mangata Holding

What Does The Institutional Ownership Tell Us About Mangata Holding?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Mangata Holding 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. 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 Mangata Holding's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Mangata Holding. Avallon Sp. z o.o. is currently the largest shareholder, with 63% of shares outstanding. This implies that they have majority interest control of the future of the company. Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. is the second largest shareholder owning 7.4% of common stock, and Powszechne Towarzystwo Emerytalne PZU SA holds about 5.0% of the company stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Mangata Holding

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 data suggests that insiders own under 1% of Mangata Holding S.A. in their own names. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just zł475m, and the board has only zł54k worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public, who are usually individual investors, hold a 11% stake in Mangata Holding. 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.

Private Equity Ownership

With an ownership of 63%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

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. Take risks for example - Mangata Holding has 2 warning signs we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.