SNGN Romgaz SA's (BVB:SNG) largest shareholders are state or government with 70% ownership, individual investors own 22%

Key Insights

• The considerable ownership by state or government in SNGN Romgaz indicates that they collectively have a greater say in management and business strategy
• The Ministry of Economy, Commerce and Business Environment of Romania owns 70% of the company
• Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock

To get a sense of who is truly in control of SNGN Romgaz SA (BVB:SNG), it is important to understand the ownership structure of the business. We can see that state or government own the lion's share in the company with 70% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 22% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about SNGN Romgaz.

Check out our latest analysis for SNGN Romgaz

What Does The Institutional Ownership Tell Us About SNGN Romgaz?

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.

As you can see, institutional investors have a fair amount of stake in SNGN Romgaz. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 SNGN Romgaz's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in SNGN Romgaz. The Ministry of Economy, Commerce and Business Environment of Romania is currently the company's largest shareholder with 70% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 5.4% and 0.5% of the 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. 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 SNGN Romgaz

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our most recent data indicates that insiders own less than 1% of SNGN Romgaz SA. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own RON1.0m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over SNGN Romgaz. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that SNGN Romgaz is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.