Stock Analysis

Individual investors invested in ASBISc Enterprises Plc (WSE:ASB) up 10% last week, insiders too were rewarded

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Key Insights

  • The considerable ownership by individual investors in ASBISc Enterprises indicates that they collectively have a greater say in management and business strategy
  • 42% of the business is held by the top 21 shareholders
  • Insider ownership in ASBISc Enterprises is 39%

If you want to know who really controls ASBISc Enterprises Plc (WSE:ASB), then you'll have to look at the makeup of its share registry. With 59% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 10% increase in the stock price last week, individual investors profited the most, but insiders who own 39% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of ASBISc Enterprises, beginning with the chart below.

Check out our latest analysis for ASBISc Enterprises

WSE:ASB Ownership Breakdown March 15th 2023

What Does The Institutional Ownership Tell Us About ASBISc Enterprises?

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.

Since institutions own only a small portion of ASBISc Enterprises, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

WSE:ASB Earnings and Revenue Growth March 15th 2023

ASBISc Enterprises is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Siarhei Kostevitch with 37% of shares outstanding. Constantinos Tziamalis is the second largest shareholder owning 1.0% of common stock, and Marios Christou holds about 0.8% of the company stock. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.

Our studies suggest that the top 21 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of ASBISc Enterprises

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

It seems insiders own a significant proportion of ASBISc Enterprises Plc. It has a market capitalization of just zł1.5b, and insiders have zł577m worth of shares in their own names. 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

The general public, who are usually individual investors, hold a substantial 59% stake in ASBISc Enterprises, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

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. Case in point: We've spotted 2 warning signs for ASBISc Enterprises you should be aware of, and 1 of them is potentially serious.

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.

Valuation is complex, but we're helping make it simple.

Find out whether ASBISc Enterprises is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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