Public companies invested in Public Joint-Stock Company "Rosseti Moscow Region" (MCX:MSRS) copped the brunt of last week's ₽4.2b market cap decline

By
Simply Wall St
Published
February 17, 2022
MISX:MSRS
Source: Shutterstock

A look at the shareholders of Public Joint-Stock Company "Rosseti Moscow Region" (MCX:MSRS) can tell us which group is most powerful. With 51% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And last week, public companies endured the biggest losses as the stock fell by 7.0%.

Let's delve deeper into each type of owner of Rosseti Moscow Region, beginning with the chart below.

Check out our latest analysis for Rosseti Moscow Region

ownership-breakdown
MISX:MSRS Ownership Breakdown February 17th 2022

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.

Rosseti Moscow Region already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Rosseti Moscow Region's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
MISX:MSRS Earnings and Revenue Growth February 17th 2022

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

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. 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

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

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 ₽97k worth of stock. This compares to a market capitalization of ₽56b. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 15% stake in the company, and hence can't easily be ignored. 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 Equity Ownership

With a stake of 18%, private equity firms could influence the Rosseti Moscow Region board. 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. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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 - Rosseti Moscow Region has 2 warning signs (and 1 which is significant) we think 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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