Could The Globos Osiguranje a.d.o. (BELEX:GLOS) Ownership Structure Tell Us Something Useful?

Every investor in Globos Osiguranje a.d.o. (BELEX:GLOS) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

Globos Osiguranje a.d.o is not a large company by global standards. It has a market capitalization of дин602m, which means it wouldn’t have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. We can zoom in on the different ownership groups, to learn more about Globos Osiguranje a.d.o.

Check out our latest analysis for Globos Osiguranje a.d.o

BELEX:GLOS Ownership Summary, January 22nd 2020
BELEX:GLOS Ownership Summary, January 22nd 2020

What Does The Lack Of Institutional Ownership Tell Us About Globos Osiguranje a.d.o?

We don’t tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it’s not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don’t attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Globos Osiguranje a.d.o might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

BELEX:GLOS Income Statement, January 22nd 2020
BELEX:GLOS Income Statement, January 22nd 2020

We note that hedge funds don’t have a meaningful investment in Globos Osiguranje a.d.o. Our data shows that Milovan Djurovic is the largest shareholder with 34% of shares outstanding. The second and third largest shareholders are Uni Global Novi Doo and Globosino doo, holding 20% and 18%, respectively.

Additionally, we found that 2 of the top shareholders have a considerable amount of ownership in the company, via their 54% 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. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Globos Osiguranje a.d.o

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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 information suggests that insiders maintain a significant holding in Globos Osiguranje a.d.o.. Insiders have a дин222m stake in this дин602m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

With a 19% ownership, the general public have some degree of sway over GLOS. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 44%, of the company’s shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we’ve discovered 3 warning signs for Globos Osiguranje a.d.o (1 is potentially serious!) that you should be aware of before investing here.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.