Pozavarovalnica Sava, d.d.'s (LJSE:POSR) last week's 4.9% decline must have disappointed individual investors who have a significant stake

Key Insights

• Pozavarovalnica Sava d.d's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 3 investors have a majority stake in the company with 56% ownership
• 20% of Pozavarovalnica Sava d.d is held by Institutions

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To get a sense of who is truly in control of Pozavarovalnica Sava, d.d. (LJSE:POSR), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 24% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

As a result, individual investors as a group endured the highest losses last week after market cap fell by €46m.

Let's take a closer look to see what the different types of shareholders can tell us about Pozavarovalnica Sava d.d.

View our latest analysis for Pozavarovalnica Sava d.d

What Does The Institutional Ownership Tell Us About Pozavarovalnica Sava d.d?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Pozavarovalnica Sava d.d. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Pozavarovalnica Sava d.d's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Pozavarovalnica Sava d.d. Looking at our data, we can see that the largest shareholder is Adris grupa d. d. with 21% of shares outstanding. In comparison, the second and third largest shareholders hold about 20% and 15% of the stock.

A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Pozavarovalnica Sava d.d

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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 data suggests that insiders own under 1% of Pozavarovalnica Sava, d.d. in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own €1.1m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Pozavarovalnica Sava d.d. 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.

Public Company Ownership

It appears to us that public companies own 21% of Pozavarovalnica Sava d.d. 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:

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 2 warning signs for Pozavarovalnica Sava d.d (of which 1 is significant!) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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. 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. Simply Wall St has no position in any stocks mentioned.