Zespól Elektrocieplowni Wroclawskich KOGENERACJA S.A.'s (WSE:KGN) market cap dropped zł101m last week; individual investors who hold 58% were hit as were institutions

Key Insights

• Zespól Elektrocieplowni Wroclawskich KOGENERACJA's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is PGE Polska Grupa Energetyczna S.A. with a 58% stake
• 28% of Zespól Elektrocieplowni Wroclawskich KOGENERACJA is held by Institutions

If you want to know who really controls Zespól Elektrocieplowni Wroclawskich KOGENERACJA S.A. (WSE:KGN), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 58% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While institutions who own 28% came under pressure after market cap dropped to zł808m last week,public companies took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Zespól Elektrocieplowni Wroclawskich KOGENERACJA.

View our latest analysis for Zespól Elektrocieplowni Wroclawskich KOGENERACJA

What Does The Institutional Ownership Tell Us About Zespól Elektrocieplowni Wroclawskich KOGENERACJA?

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.

Zespól Elektrocieplowni Wroclawskich KOGENERACJA already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Zespól Elektrocieplowni Wroclawskich KOGENERACJA's 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 Zespól Elektrocieplowni Wroclawskich KOGENERACJA. The company's largest shareholder is PGE Polska Grupa Energetyczna S.A., with ownership of 58%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Allianz Asset Management GmbH is the second largest shareholder owning 10.0% of common stock, and Powszechne Towarzystwo Emerytalne PZU SA holds about 8.0% 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Zespól Elektrocieplowni Wroclawskich KOGENERACJA

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.

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.

We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Zespól Elektrocieplowni Wroclawskich KOGENERACJA. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 58% of the Zespól Elektrocieplowni Wroclawskich KOGENERACJA shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zespól Elektrocieplowni Wroclawskich KOGENERACJA better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.