Are Institutions Heavily Invested In Lubelski Wegiel Bogdanka S.A.'s (WSE:LWB) Shares?

The big shareholder groups in Lubelski Wegiel Bogdanka S.A. (WSE:LWB) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

Lubelski Wegiel Bogdanka is not a large company by global standards. It has a market capitalization of zł821m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Lubelski Wegiel Bogdanka.

View our latest analysis for Lubelski Wegiel Bogdanka

What Does The Institutional Ownership Tell Us About Lubelski Wegiel Bogdanka?

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 Lubelski Wegiel Bogdanka 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. 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 Lubelski Wegiel Bogdanka's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Lubelski Wegiel Bogdanka. ENEA S.A. is currently the largest shareholder, with 66% of shares outstanding. This implies that they have majority interest control of the future of the company. With 4.9% and 1.6% of the shares outstanding respectively, Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. and Allianz Asset Management AG are the second and third largest shareholders.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Lubelski Wegiel Bogdanka

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 Lubelski Wegiel Bogdanka S.A. insiders own under 1% of the company. It seems the board members have no more than zł30k worth of shares in the zł821m company. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 23% stake in the company, will not 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.

Public Company Ownership

We can see that public companies hold 66% of the Lubelski Wegiel Bogdanka shares on issue. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Lubelski Wegiel Bogdanka better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Lubelski Wegiel Bogdanka .

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. 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.
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