State or government invested in Jastrzebska Spólka Weglowa S.A. (WSE:JSW) copped the brunt of last week's zł270m market cap decline

Key Insights

• The considerable ownership by state or government in Jastrzebska Spólka Weglowa indicates that they collectively have a greater say in management and business strategy
• 55% of the company is held by a single shareholder (Ministry of State Treasury)
• 15% of Jastrzebska Spólka Weglowa is held by Institutions

Every investor in Jastrzebska Spólka Weglowa S.A. (WSE:JSW) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 55% to be precise, is state or government. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, state or government as a group endured the highest losses last week after market cap fell by zł270m.

In the chart below, we zoom in on the different ownership groups of Jastrzebska Spólka Weglowa.

View our latest analysis for Jastrzebska Spólka Weglowa

What Does The Institutional Ownership Tell Us About Jastrzebska Spólka Weglowa?

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.

Jastrzebska Spólka Weglowa already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Jastrzebska Spólka Weglowa's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Jastrzebska Spólka Weglowa. Ministry of State Treasury is currently the company's largest shareholder with 55% 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 5.0% and 1.7% of the stock.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Jastrzebska Spólka Weglowa

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.

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 less than 1% of Jastrzebska Spólka Weglowa S.A.. It has a market capitalization of just zł2.8b, and the board has only zł31k worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Jastrzebska Spólka Weglowa. 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.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

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.