Polski Koncern Naftowy ORLEN Spólka Akcyjna's (WSE:PKN) institutional investors lost 3.1% last week but have benefitted from longer-term gains

By
Simply Wall St
Published
March 16, 2022
WSE:PKN
Source: Shutterstock

Every investor in Polski Koncern Naftowy ORLEN Spólka Akcyjna (WSE:PKN) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are institutions with 42% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 3.1% in value last week. However, the 19% one-year return to shareholders may have helped lessen their pain. But they would probably be wary of future losses.

Let's delve deeper into each type of owner of Polski Koncern Naftowy ORLEN Spólka Akcyjna, beginning with the chart below.

View our latest analysis for Polski Koncern Naftowy ORLEN Spólka Akcyjna

ownership-breakdown
WSE:PKN Ownership Breakdown March 16th 2022

What Does The Institutional Ownership Tell Us About Polski Koncern Naftowy ORLEN Spólka Akcyjna?

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.

Polski Koncern Naftowy ORLEN Spólka Akcyjna 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 Polski Koncern Naftowy ORLEN Spólka Akcyjna's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
WSE:PKN Earnings and Revenue Growth March 16th 2022

Polski Koncern Naftowy ORLEN Spólka Akcyjna is not owned by hedge funds. Ministerstwo Skarbu Panstwa is currently the largest shareholder, with 28% of shares outstanding. NN Investment Partners International Holdings B.V. is the second largest shareholder owning 7.5% of common stock, and Aviva Powszechne Towarzystwo Emerytalne Aviva Santander S.A. holds about 6.4% of the company stock.

We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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 Polski Koncern Naftowy ORLEN Spólka Akcyjna

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

The general public-- including retail investors -- own 31% 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.

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. Case in point: We've spotted 2 warning signs for Polski Koncern Naftowy ORLEN Spólka Akcyjna you should be aware of, and 1 of them is potentially serious.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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