PJSC Tatneft's (MCX:TATN) largest shareholders are individual investors with 57% ownership, sovereign wealth funds own 28%

By
Simply Wall St
Published
January 18, 2022
MISX:TATN
Source: Shutterstock

Every investor in PJSC Tatneft (MCX:TATN) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 57% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Sovereign wealth funds, on the other hand, account for 28% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of PJSC Tatneft.

View our latest analysis for PJSC Tatneft

ownership-breakdown
MISX:TATN Ownership Breakdown January 18th 2022

What Does The Institutional Ownership Tell Us About PJSC Tatneft?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in PJSC Tatneft. 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 PJSC Tatneft's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
MISX:TATN Earnings and Revenue Growth January 18th 2022

Hedge funds don't have many shares in PJSC Tatneft. Our data shows that AO Svyazinvestneftekhim is the largest shareholder with 28% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.8% and 1.9%, of the shares outstanding, respectively.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of PJSC Tatneft

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 information suggests that PJSC Tatneft insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own ₽1.7b 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

The general public, mostly comprising of individual investors, collectively holds 57% of PJSC Tatneft shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

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 - PJSC Tatneft has 1 warning sign we think you should be aware of.

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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