Are Institutions Heavily Invested In Public Joint-Stock Company "Rosseti Moscow Region"'s (MCX:MSRS) Shares?

The big shareholder groups in Public Joint-Stock Company "Rosseti Moscow Region" (MCX:MSRS) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Rosseti Moscow Region isn't enormous, but it's not particularly small either. It has a market capitalization of ₽65b, which means it would generally expect to see some institutions on the share registry. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholders can tell us about Rosseti Moscow Region.

View our latest analysis for Rosseti Moscow Region

What Does The Institutional Ownership Tell Us About Rosseti Moscow Region?

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.

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

Rosseti Moscow Region is not owned by hedge funds. The company's largest shareholder is Rosseti, Public Joint Stock Company, with ownership of 51%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 18% and 9.8%, of the shares outstanding, respectively.

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. 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 Rosseti Moscow Region

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.

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.

Our information suggests that Public Joint-Stock Company "Rosseti Moscow Region" insiders own under 1% of the company. It appears that the board holds about ₽112k worth of stock. This compares to a market capitalization of ₽65b. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

With a 15% ownership, the general public have some degree of sway over Rosseti Moscow Region. 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.

Private Equity Ownership

Private equity firms hold a 18% stake in Rosseti Moscow Region. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Public Company Ownership

It appears to us that public companies own 51% of Rosseti Moscow Region. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Rosseti Moscow Region better, we need to consider many other factors. Be aware that Rosseti Moscow Region is showing 2 warning signs in our investment analysis , you should know about...

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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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. 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.
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