While institutions invested in Pozavarovalnica Sava, d.d. (LJSE:POSR) benefited from last week's 10% gain, individual investors stood to gain the most

Key Insights

• Significant control over Pozavarovalnica Sava d.d by individual investors implies that the general public has more power to influence management and governance-related decisions
• 52% of the business is held by the top 5 shareholders
• Institutions own 25% of Pozavarovalnica Sava d.d

A look at the shareholders of Pozavarovalnica Sava, d.d. (LJSE:POSR) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 39% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 10% increase in the stock price last week, individual investors profited the most, but institutions who own 25% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Pozavarovalnica Sava d.d, beginning with the chart below.

See our latest analysis for Pozavarovalnica Sava d.d

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

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Pozavarovalnica Sava d.d. 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 Pozavarovalnica Sava d.d's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Pozavarovalnica Sava d.d. Slovenian Sovereign Holding, d.d. is currently the company's largest shareholder with 20% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 15% and 6.9%, of the shares outstanding, respectively.

On looking further, we found that 52% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

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.

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 Pozavarovalnica Sava, d.d. insiders own under 1% of the company. It has a market capitalization of just €397m, and the board has only €607k worth of shares in their own names. 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

With a 39% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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.

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. Take risks for example - Pozavarovalnica Sava d.d has 2 warning signs (and 1 which doesn't sit too well with us) 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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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.