Stock Analysis

Who Owns Rosgosstrakh Insurance Company (Public Joint Stock Company) (MCX:RGSS)?

MISX:RGSS
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In this article, I'm going to take a look at Rosgosstrakh Insurance Company (Public Joint Stock Company)’s (MISX:RGSS) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. A company's ownership structure is often linked to its share performance in both the long- and short-term. Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices. Although this is an important factor for long-term investors, many investors can also be impacted by institutional presence and their high-volume trading. Therefore, I will take a look at RGSS's shareholders in more detail.

See our latest analysis for Rosgosstrakh Insurance Company
MISX:RGSS Ownership_summary Mar 22nd 18
MISX:RGSS Ownership_summary Mar 22nd 18

Institutional Ownership

Institutional investors are one of the largest group of market participants and their buy-sell decisions on a company's stock can significantly impact prices, more so, when there are relatively small amounts of shares available on the market to trade. With an institutional ownership of 5.89%, RGSS doesn't seem too exposed to higher volatility resulting from institutional trading.

General Public Ownership

A substantial ownership of 24.85% in RGSS is held by the general public. This size of ownership gives retail investors collective power in deciding on major policy decisions such as executive compensation, appointment of directors and acquisitions of businesses. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and potential acquisitions. This is a positive sign for an investor who wants to be involved in key decision-making of the company.

Private Company Ownership

Potential investors in RGSS should also look at another important group of investors: private companies, with a stake of 69.25%, who are primarily invested because of strategic and capital gain interests. An ownership of this size indicates a strong financial backing and has the potential to influence RGSS's business strategy. Thus, investors should dig deeper into RGSS's business relations with these companies and how it can affect shareholder returns in the long-term.

Next Steps:

Institutional ownership level and composition in RGSS is not high nor active enough to significantly impact its investment thesis. However, ownership structure should not be the only focus of your research when constructing an investment thesis around RGSS. Instead, you should be evaluating company-specific factors such as Rosgosstrakh Insurance Company's past track record and financial health. I urge you to complete your research by taking a look at the following:

  • 1. Financial Health: Is RGSS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  • 2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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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Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article 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.

About MISX:RGSS

Rosgosstrakh Insurance Company

Rosgosstrakh Insurance Company (Public Joint Stock Company) provides insurance products and services to individuals and companies in Russia.

Excellent balance sheet with questionable track record.