Great week for 11 bit studios S.A. (WSE:11B) institutional investors after losing 67% over the previous year

Key Insights

• Institutions' substantial holdings in 11 bit studios implies that they have significant influence over the company's share price
• 51% of the business is held by the top 11 shareholders
• Insiders own 17% of 11 bit studios

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. With 46% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Institutional investors would appreciate the 16% increase in share price last week, given their one-year losses have totalled a disappointing 67%.

Let's take a closer look to see what the different types of shareholders can tell us about 11 bit studios.

View our latest analysis for 11 bit studios

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

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

11 bit studios 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. 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 11 bit studios' historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in 11 bit studios. Looking at our data, we can see that the largest shareholder is Allianz Asset Management GmbH with 9.5% of shares outstanding. With 7.0% and 6.0% of the shares outstanding respectively, Grzegorz Miechowski and Nationale-Nederlanden Powszechne Towarzystwo Emerytalne S.A. are the second and third largest shareholders. Grzegorz Miechowski, who is the second-largest shareholder, also happens to hold the title of Member of Management Board. Additionally, the company's CEO Przemyslaw Marszal directly holds 5.0% of the total shares outstanding.

Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 11 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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

Insider Ownership Of 11 bit studios

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 a reasonable proportion of 11 bit studios S.A.. Insiders have a zł71m stake in this zł428m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 11 bit studios. 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:

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. For example, we've discovered 2 warning signs for 11 bit studios that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.