In this article, I’m going to take a look at Public Joint-Stock Company TNS energo Rostov-on-Don’s (MISX:RTSB) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. Ownership structure of a company has been found to affect share performance over time. If an activist institution invests the same amount of capital in a stock as a passive long-term pension fund, the implications are potentially different for key corporate financing decisions such as the use of excess cash or the source of financing. While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity. Now I will analyze RTSB’s shareholder registry in more detail.See our latest analysis for TNS energo Rostov-on-Don
General Public OwnershipThe general public, with 2.82% stake, is a relatively minor group of shareholders in RTSB. This size of ownership may not be enough to sway a policy decision in their favour, but they can still make a collective impact on company policies if it aligns with other large shareholders.
Public Company OwnershipAnother group of owners that a potential investor in RTSB should consider are other public companies, with a stake of 97.18%. While they invest more often due to strategic interests, an investment can also be driven by capital gains through share price appreciation. This kind of ownership, if predominantly strategic, can give these companies a significant power to affect RTSB’s business strategy. Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.
A large shareholding of RTSB by the general public could mean higher market liquidity to buy and sell shares for retail investors, and also the potential to have more influence over company policies as a collective. However, if you are building an investment case for RTSB, ownership structure alone should not dictate your decision to buy or sell the stock. Instead, you should be evaluating company-specific factors such as TNS energo Rostov-on-Don’s past track record and financial health. I highly recommend you to complete your research by taking a look at the following:
- 1. Financial Health: Is RTSB’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. Past Track Record: Has RTSB been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of RTSB’s historicals for more clarity.
- 3. 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.