Institutions profited after TAURON Polska Energia S.A.'s (WSE:TPE) market cap rose zł356m last week but state or government profited the most

Key Insights

• TAURON Polska Energia's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 3 shareholders own 51% of the company
• 28% of TAURON Polska Energia is held by Institutions

Every investor in TAURON Polska Energia S.A. (WSE:TPE) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are state or government with 30% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 5.0% increase in the stock price last week, state or government profited the most, but institutions who own 28% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of TAURON Polska Energia, beginning with the chart below.

Check out our latest analysis for TAURON Polska Energia

What Does The Institutional Ownership Tell Us About TAURON Polska Energia?

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.

As you can see, institutional investors have a fair amount of stake in TAURON Polska Energia. 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. 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 TAURON Polska Energia, (below). Of course, keep in mind that there are other factors to consider, too.

It looks like hedge funds own 10% of TAURON Polska Energia shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. The State Treasury of the Republic of Poland is currently the largest shareholder, with 30% of shares outstanding. In comparison, the second and third largest shareholders hold about 10% and 10% of the stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 51% stake.

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. 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 TAURON Polska Energia

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.

We note our data does not show any board members holding shares, personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 21% stake in TAURON Polska Energia. 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

It appears to us that public companies own 10% of TAURON Polska Energia. 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:

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. Take risks for example - TAURON Polska Energia has 1 warning sign we think you should be aware of.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.