PGE Polska Grupa Energetyczna S.A.'s (WSE:PGE) largest shareholders are state or government with 61% ownership, institutions own 27%

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
• Ministry of State Treasury owns 61% of the company
• 27% of PGE Polska Grupa Energetyczna is held by Institutions

To get a sense of who is truly in control of PGE Polska Grupa Energetyczna S.A. (WSE:PGE), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are state or government with 61% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And institutions on the other hand have a 27% ownership in the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.

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

See our latest analysis for PGE Polska Grupa Energetyczna

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

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 PGE Polska Grupa Energetyczna does have institutional investors; and they hold a good portion of the company's stock. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of PGE Polska Grupa Energetyczna, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in PGE Polska Grupa Energetyczna. Ministry of State Treasury is currently the largest shareholder, with 61% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 5.0% and 4.3%, of the shares outstanding, respectively.

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 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 PGE Polska Grupa Energetyczna

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.

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.

We note our data does not show any board members 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 12% 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.