Could BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek S.A.’s (WSE:BML) Investor Composition Influence The Stock Price?

The big shareholder groups in BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek S.A. (WSE:BML) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.’

BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek is not a large company by global standards. It has a market capitalization of zł65m, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about BML.

Check out our latest analysis for BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek

WSE:BML Ownership Summary January 2nd 19
WSE:BML Ownership Summary January 2nd 19

What Does The Institutional Ownership Tell Us About BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek?

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.

As you can see, institutional investors own 9.1% of BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek. 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 BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek’s earnings history, below. Of course, the future is what really matters.

WSE:BML Income Statement Export January 2nd 19
WSE:BML Income Statement Export January 2nd 19

We note that hedge funds don’t have a meaningful investment in BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 a reasonable proportion of BIOMED-LUBLIN Wytwórnia Surowic i Szczepionek S.A.. Insiders own zł20m worth of shares in the zł65m 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

With a 40% ownership, the general public have some degree of sway over BML. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 20%, of the BML stock. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow .

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.