NEUCA S.A.'s (WSE:NEU) top holders are insiders and they are likely disappointed by the recent 6.2% drop

Key Insights

• Insiders appear to have a vested interest in NEUCA's growth, as seen by their sizeable ownership
• 52% of the business is held by the top 2 shareholders
• Institutional ownership in NEUCA is 25%

Every investor in NEUCA S.A. (WSE:NEU) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 54% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, insiders endured the biggest losses as the stock fell by 6.2%.

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

View our latest analysis for NEUCA

What Does The Institutional Ownership Tell Us About NEUCA?

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 NEUCA. 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. 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 NEUCA, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in NEUCA. Kazimierz Herba is currently the company's largest shareholder with 27% of shares outstanding. Wieslawa Herba is the second largest shareholder owning 25% of common stock, and Forum Towarzystwo Funduszy Inwestycyjnych S.A. holds about 11% of the company stock. Additionally, the company's CEO Piotr Sucharski directly holds 1.5% of the total shares outstanding.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of NEUCA

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. 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.

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 most recent data indicates that insiders own the majority of NEUCA S.A.. This means they can collectively make decisions for the company. Given it has a market cap of zł3.6b, that means they have zł1.9b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 21% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand NEUCA better, we need to consider many other factors. For example, we've discovered 1 warning sign for NEUCA that you should be aware of before investing here.

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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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.