Pepco Group N.V.'s (WSE:PCO) market cap dropped zł1.2b last week; Public companies bore the brunt
- The considerable ownership by public companies in Pepco Group indicates that they collectively have a greater say in management and business strategy
- The largest shareholder of the company is Steinhoff International Holdings N.V. with a 72% stake
- Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
Every investor in Pepco Group N.V. (WSE:PCO) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 72% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, public companies as a group endured the highest losses last week after market cap fell by zł1.2b.
In the chart below, we zoom in on the different ownership groups of Pepco Group.
View our latest analysis for Pepco Group
What Does The Institutional Ownership Tell Us About Pepco Group?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Institutions have a very small stake in Pepco Group. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Pepco Group is not owned by hedge funds. Steinhoff International Holdings N.V. is currently the largest shareholder, with 72% of shares outstanding. This implies that they have majority interest control of the future of the company. With 4.7% and 0.9% of the shares outstanding respectively, E. Mule and The Vanguard Group, Inc. are the second and third largest shareholders.
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 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 Pepco Group
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.
Shareholders would probably be interested to learn that insiders own shares in Pepco Group N.V.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around zł1.3b worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
The general public-- including retail investors -- own 18% stake in the company, and hence can't 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.
Public Company Ownership
We can see that public companies hold 72% of the Pepco Group shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
It's always worth thinking about the different groups who own shares in a company. But to understand Pepco Group better, we need to consider many other factors.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
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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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.
Pepco Group N.V. operates as a discount variety retailer in the United Kingdom, Poland, and rest of Europe.
Flawless balance sheet with solid track record.