State or government who have a significant stake must be disappointed along with institutions after Polski Holding Nieruchomosci S.A.'s (WSE:PHN) market cap dropped by zł100m

Key Insights

• The considerable ownership by state or government in Polski Holding Nieruchomosci indicates that they collectively have a greater say in management and business strategy
• Ministry of State Treasury owns 72% of the company
• 16% of Polski Holding Nieruchomosci is held by Institutions

Every investor in Polski Holding Nieruchomosci S.A. (WSE:PHN) should be aware of the most powerful shareholder groups. We can see that state or government own the lion's share in the company with 72% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 16% came under pressure after market cap dropped to zł607m last week,state or government took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Polski Holding Nieruchomosci.

View our latest analysis for Polski Holding Nieruchomosci

What Does The Institutional Ownership Tell Us About Polski Holding Nieruchomosci?

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.

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

We note that hedge funds don't have a meaningful investment in Polski Holding Nieruchomosci. Ministry of State Treasury is currently the company's largest shareholder with 72% of shares outstanding. This implies that they have majority interest control of the future of the company. Allianz Asset Management GmbH is the second largest shareholder owning 10.0% of common stock, and Goldman Sachs Asset Management, L.P. holds about 5.6% of the company 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Polski Holding Nieruchomosci

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. 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 data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

With a 12% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Polski Holding Nieruchomosci. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we've discovered 2 warning signs for Polski Holding Nieruchomosci that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.