Institutional investors have a lot riding on KRUK Spólka Akcyjna (WSE:KRU) with 77% ownership

Key Insights

• Institutions' substantial holdings in KRUK Spólka Akcyjna implies that they have significant influence over the company's share price
• 51% of the business is held by the top 5 shareholders
• 10% of KRUK Spólka Akcyjna is held by insiders

Every investor in KRUK Spólka Akcyjna (WSE:KRU) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 77% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And things are looking up for institutional investors after the company gained zł448m in market cap last week. The one-year return on investment is currently 85% and last week's gain would have been more than welcomed.

In the chart below, we zoom in on the different ownership groups of KRUK Spólka Akcyjna.

Check out our latest analysis for KRUK Spólka Akcyjna

What Does The Institutional Ownership Tell Us About KRUK Spólka Akcyjna?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in KRUK Spólka Akcyjna. 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 KRUK Spólka Akcyjna, (below). Of course, keep in mind that there are other factors to consider, too.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in KRUK Spólka Akcyjna. Goldman Sachs Asset Management, L.P. is currently the company's largest shareholder with 14% of shares outstanding. Allianz Asset Management GmbH is the second largest shareholder owning 12% of common stock, and Piotr Krupa holds about 9.1% of the company stock.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 KRUK Spólka Akcyjna

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 information suggests that insiders maintain a significant holding in KRUK Spólka Akcyjna. Insiders own zł837m worth of shares in the zł8.2b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over KRUK Spólka Akcyjna. 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:

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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for KRUK Spólka Akcyjna (of which 2 can't be ignored!) you should know about.

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.