Do Institutions Own Fabryka Farb i Lakierów Sniezka SA (WSE:SKA) Shares?

Every investor in Fabryka Farb i Lakierów Sniezka SA (WSE:SKA) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of zł1.1b, Fabryka Farb i Lakierów Sniezka is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Fabryka Farb i Lakierów Sniezka.

Check out our latest analysis for Fabryka Farb i Lakierów Sniezka

What Does The Institutional Ownership Tell Us About Fabryka Farb i Lakierów Sniezka?

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.

Fabryka Farb i Lakierów Sniezka already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Fabryka Farb i Lakierów Sniezka's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Fabryka Farb i Lakierów Sniezka. Looking at our data, we can see that the largest shareholder is PPHU Elzbieta i Jerzy Pater Sp. z o.o. with 19% of shares outstanding. PPHU Iwona i Stanislaw Cymbor Sp. z o.o. is the second largest shareholder owning 19% of common stock, and Aviva Powszechne Towarzystwo Emerytalne Aviva Santander S.A. holds about 12% of the company stock. In addition, we found that Piotr Mikrut, the CEO has 10% of the shares allocated to his name

On looking further, we found that 59% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Fabryka Farb i Lakierów Sniezka

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. 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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Fabryka Farb i Lakierów Sniezka SA. Insiders own zł254m worth of shares in the zł1.1b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, with a 14% stake in the company, will not easily be ignored. 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.

Private Company Ownership

We can see that Private Companies own 38%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Fabryka Farb i Lakierów Sniezka that you should be aware of.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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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