CEO Alexander Mechetin, Public joint-stock company Beluga Group's (MCX:BELU) largest shareholder sees value of holdings go down 18% after recent drop

By
Simply Wall St
Published
February 22, 2022
MISX:BELU
Source: Shutterstock

A look at the shareholders of Public joint-stock company Beluga Group (MCX:BELU) can tell us which group is most powerful. With 72% stake, individual insiders possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, insiders endured the biggest losses as the stock fell by 18%.

Let's delve deeper into each type of owner of Beluga Group, beginning with the chart below.

Check out our latest analysis for Beluga Group

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MISX:BELU Ownership Breakdown February 22nd 2022

What Does The Institutional Ownership Tell Us About Beluga Group?

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.

We can see that Beluga Group does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Beluga Group, (below). Of course, keep in mind that there are other factors to consider, too.

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MISX:BELU Earnings and Revenue Growth February 22nd 2022

We note that hedge funds don't have a meaningful investment in Beluga Group. The company's CEO Alexander Mechetin is the largest shareholder with 69% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. In comparison, the second and third largest shareholders hold about 2.4% and 1.8% of the stock. Interestingly, the third-largest shareholder, Sergey Molchanov is also a Vice Chairman, again, indicating strong insider ownership amongst the company's top shareholders.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Beluga Group

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. 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.

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.

It seems that insiders own more than half the Public joint-stock company Beluga Group stock. This gives them a lot of power. Given it has a market cap of ₽33b, that means they have ₽23b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

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

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. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Beluga Group (of which 1 doesn't sit too well with us!) you should know about.

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.

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