PGE Polska Grupa Energetyczna S.A.'s (WSE:PGE) 3.8% loss last week hit both individual investors who own 61% as well as institutions

Key Insights

• PGE Polska Grupa Energetyczna's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• The largest shareholder of the company is The State Treasury of the Republic of Poland with a 61% stake
• Institutions own 26% of PGE Polska Grupa Energetyczna

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A look at the shareholders of PGE Polska Grupa Energetyczna S.A. (WSE:PGE) can tell us which group is most powerful. The group holding the most number of shares in the company, around 61% to be precise, is state or government. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions, who own 26% shares weren’t spared from last week’s zł642m market cap drop, state or government as a group suffered the maximum losses

Let's delve deeper into each type of owner of PGE Polska Grupa Energetyczna, beginning with the chart below.

Check out our latest analysis for PGE Polska Grupa Energetyczna

What Does The Institutional Ownership Tell Us About PGE Polska Grupa Energetyczna?

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.

We can see that PGE Polska Grupa Energetyczna does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 PGE Polska Grupa Energetyczna's earnings history below. Of course, the future is what really matters.

PGE Polska Grupa Energetyczna is not owned by hedge funds. Our data shows that The State Treasury of the Republic of Poland is the largest shareholder with 61% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 4.9% and 4.3% of the stock.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of PGE Polska Grupa Energetyczna

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our data cannot confirm that board members are holding shares personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over PGE Polska Grupa Energetyczna. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand PGE Polska Grupa Energetyczna better, we need to consider many other factors.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.