State or government in Elektro Ljubljana d.d. (LJSE:ELOG) are its biggest bettors, and their bets paid off as stock gained 20% last week

Key Insights

• Significant control over Elektro Ljubljana d.d by state or government implies that the general public has more power to influence management and governance-related decisions
• 80% of the company is held by a single shareholder (Slovenia)
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

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Every investor in Elektro Ljubljana d.d. (LJSE:ELOG) should be aware of the most powerful shareholder groups. With 80% stake, state or government 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).

As a result, state or government were the biggest beneficiaries of last week’s 20% gain.

In the chart below, we zoom in on the different ownership groups of Elektro Ljubljana d.d.

Check out our latest analysis for Elektro Ljubljana d.d

What Does The Institutional Ownership Tell Us About Elektro Ljubljana 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.

As you can see, institutional investors have a fair amount of stake in Elektro Ljubljana 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. 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 Elektro Ljubljana d.d's earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Elektro Ljubljana d.d. Looking at our data, we can see that the largest shareholder is Slovenia with 80% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 3.9% of the shares outstanding, followed by an ownership of 2.7% by the third-largest shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Elektro Ljubljana 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. 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.

We can report that insiders do own shares in Elektro Ljubljana d.d.. As individuals, the insiders collectively own €1.8m worth of the €108m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. 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:

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. For instance, we've identified 2 warning signs for Elektro Ljubljana d.d that you should be aware of.

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.