Do Insiders Own Lots Of Shares In 11 bit studios S.A. (WSE:11B)?

If you want to know who really controls 11 bit studios S.A. (WSE:11B), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.

11 bit studios is a smaller company with a market capitalization of zł1.1b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about 11 bit studios.

Check out our latest analysis for 11 bit studios

What Does The Institutional Ownership Tell Us About 11 bit studios?

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.

We can see that 11 bit studios does have institutional investors; and they hold a good portion of the company's stock. 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. 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 11 bit studios' earnings history below. Of course, the future is what really matters.

11 bit studios is not owned by hedge funds. Our data shows that Aviva Investors Poland Towarzystwo Funduszy Inwestycyjnych S.A. is the largest shareholder with 7.7% of shares outstanding. Grzegorz Miechowski is the second largest shareholder owning 7.5% of common stock, and Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. holds about 5.8% of the company stock. Grzegorz Miechowski, who is the second-largest shareholder, also happens to hold the title of Member of Management Board. In addition, we found that Przemyslaw Marszal, the CEO has 4.5% of the shares allocated to his name

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

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 11 bit studios

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 information suggests that insiders maintain a significant holding in 11 bit studios S.A.. It has a market capitalization of just zł1.1b, and insiders have zł178m worth of shares in their own names. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 52% of 11 bit studios shares. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand 11 bit studios better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for 11 bit studios (of which 1 is concerning!) you should know about.

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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