Painful week for private companies invested in Grupa Pracuj S.A. (WSE:GPP) after 5.6% drop, institutions also suffered losses

Key Insights

• Significant control over Grupa Pracuj by private companies implies that the general public has more power to influence management and governance-related decisions
• 51% of the company is held by a single shareholder (Frascati Investments Sp. Z O.O.*)
• Insiders own 12% of Grupa Pracuj

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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. And the group that holds the biggest piece of the pie are private companies with 58% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 20% shares weren’t spared from last week’s zł253m market cap drop, private companies as a group suffered the maximum losses

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

Check out 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.

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

We note that hedge funds don't have a meaningful investment in Grupa Pracuj. Frascati Investments Sp. Z O.O.* is currently the company's largest shareholder with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 8.4% and 6.8% of the stock. Furthermore, CEO Przemyslaw Gacek is the owner of 1.6% of the company's shares.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Grupa Pracuj

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.

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 Grupa Pracuj S.A.. It is very interesting to see that insiders have a meaningful zł498m stake in this zł4.3b 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, who are usually individual investors, hold a 11% stake in Grupa Pracuj. 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.

Private Company Ownership

It seems that Private Companies own 58%, of the Grupa Pracuj stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private 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.

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.