Zavarovalnica Triglav, d.d.'s (LJSE:ZVTG) market cap dropped €52m last week; Private companies bore the brunt

Key Insights

• Significant control over Zavarovalnica Triglav d.d by private companies implies that the general public has more power to influence management and governance-related decisions
• 63% of the business is held by the top 2 shareholders
• 10% of Zavarovalnica Triglav d.d is held by Institutions

To get a sense of who is truly in control of Zavarovalnica Triglav, d.d. (LJSE:ZVTG), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are private companies with 35% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 5.8% decline in share price, private companies suffered the most losses.

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

See our latest analysis for Zavarovalnica Triglav d.d

What Does The Institutional Ownership Tell Us About Zavarovalnica Triglav 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.

Zavarovalnica Triglav d.d 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 Zavarovalnica Triglav d.d's historic earnings and revenue below, but keep in mind there's always more to the story.

Zavarovalnica Triglav d.d is not owned by hedge funds. Zavod Za Pokojninsko In Invalidsko Zavarovanje Slovenije is currently the company's largest shareholder with 35% of shares outstanding. With 28% and 6.7% of the shares outstanding respectively, Slovenian Sovereign Holding, d.d. and Erste Asset Management GmbH are the second and third largest shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 63% stake.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Zavarovalnica Triglav d.d

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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that Zavarovalnica Triglav, d.d. insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It seems the board members have no more than €217k worth of shares in the €863m company. 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 26% 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.

Private Company Ownership

We can see that Private Companies own 35%, of the shares on issue. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Zavarovalnica Triglav d.d better, we need to consider many other factors. Be aware that Zavarovalnica Triglav d.d is showing 1 warning sign in our investment analysis , you should know about...

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.