Retail investors who hold 37% of Pozavarovalnica Sava, d.d. (LJSE:POSR) gained 9.8%, institutions profited as well

Key Insights

• The considerable ownership by retail investors in Pozavarovalnica Sava d.d indicates that they collectively have a greater say in management and business strategy
• A total of 5 investors have a majority stake in the company with 52% ownership
• 28% of Pozavarovalnica Sava d.d is held by Institutions

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. With 37% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that benefitted the most from last week’s €50m market cap gain, institutions too had a 28% share in those profits.

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?

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.

Pozavarovalnica Sava d.d already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Slovenian Sovereign Holding, d.d. with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 15% and 6.9% of the stock.

Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Pozavarovalnica Sava d.d

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 most recent data indicates that insiders own less than 1% of Pozavarovalnica Sava, d.d.. It appears that the board holds about €670k worth of stock. This compares to a market capitalization of €555m. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public-- including retail investors -- own 37% stake in the company, and hence can't easily be ignored. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Pozavarovalnica Sava d.d better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Pozavarovalnica Sava d.d you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com