Grupa Pracuj S.A.'s (WSE:GPP) stock price dropped 4.8% last week; private companies would not be happy

Key Insights

• Grupa Pracuj's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• Frascati Investments Sp. Z O.O.* owns 51% of the company
• Insiders own 12% of Grupa Pracuj

To get a sense of who is truly in control of Grupa Pracuj S.A. (WSE:GPP), it is important to understand the ownership structure of the business. We can see that private companies own the lion's share in the company with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And following last week's 4.8% decline in share price, private companies suffered the most losses.

Let's delve deeper into each type of owner of Grupa Pracuj, beginning with the chart below.

View our latest analysis for Grupa Pracuj

What Does The Institutional Ownership Tell Us About Grupa Pracuj?

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.

Grupa Pracuj already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Grupa Pracuj's historic earnings and revenue below, but keep in mind there's always more to the story.

Grupa Pracuj is not owned by hedge funds. Frascati Investments Sp. Z O.O.* is currently the company's largest shareholder with 51% of shares outstanding. This implies that they have majority interest control of the future of the company. Maciej Noga is the second largest shareholder owning 8.4% of common stock, and Tcv Luxco Perogie S.À R.L. holds about 6.8% of the company stock. In addition, we found that Przemyslaw Gacek, the CEO has 1.6% of the shares allocated to their name.

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 Grupa Pracuj

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

It seems insiders own a significant proportion of Grupa Pracuj S.A.. It is very interesting to see that insiders have a meaningful zł475m stake in this zł4.1b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 17% 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.

Private Company Ownership

We can see that Private Companies own 58%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Grupa Pracuj better, we need to consider many other factors. Take risks for example - Grupa Pracuj 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.