Stock Analysis

While individual investors own 32% of OMV Petrom S.A. (BVB:SNP), public companies are its largest shareholders with 43% ownership

BVB:SNP
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Key Insights

  • Significant control over OMV Petrom by public companies implies that the general public has more power to influence management and governance-related decisions
  • The top 2 shareholders own 61% of the company
  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of OMV Petrom S.A. (BVB:SNP) can tell us which group is most powerful. With 43% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 32% ownership in the company.

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

Check out our latest analysis for OMV Petrom

ownership-breakdown
BVB:SNP Ownership Breakdown April 28th 2023

What Does The Institutional Ownership Tell Us About OMV Petrom?

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 OMV Petrom 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 OMV Petrom's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
BVB:SNP Earnings and Revenue Growth April 28th 2023

OMV Petrom is not owned by hedge funds. Our data shows that OMV Aktiengesellschaft is the largest shareholder with 43% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 18% and 2.5%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 61% stake.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of OMV Petrom

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

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

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over OMV Petrom. 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.

Public Company Ownership

Public companies currently own 43% of OMV Petrom stock. 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. To that end, you should learn about the 3 warning signs we've spotted with OMV Petrom (including 1 which is a bit concerning) .

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.

Valuation is complex, but we're helping make it simple.

Find out whether OMV Petrom is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.