Stock Analysis

Onde S.A.'s (WSE:OND) market cap touched zł572m last week, benefiting both public companies who own 60% as well as institutions

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WSE:OND
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If you want to know who really controls Onde S.A. (WSE:OND), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 60% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Public companies gained the most after market cap touched zł572m last week, while institutions who own 18% also benefitted.

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

See our latest analysis for Onde

ownership-breakdown
WSE:OND Ownership Breakdown December 6th 2022

What Does The Institutional Ownership Tell Us About Onde?

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 Onde does have institutional investors; and they hold a good portion of the company's stock. 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 Onde, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
WSE:OND Earnings and Revenue Growth December 6th 2022

We note that hedge funds don't have a meaningful investment in Onde. Looking at our data, we can see that the largest shareholder is Erbud S.A. with 60% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Jacek Leczkowski is the second largest shareholder owning 6.4% of common stock, and MetLife Powszechne Towarzystwo Emerytalne S.A. 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Onde

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. 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 most recent data indicates that insiders own some shares in Onde S.A.. As individuals, the insiders collectively own zł42m worth of the zł572m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

With a 15% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Onde. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 60% of Onde. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Onde .

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.

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