Stock Analysis

What Is The Ownership Structure Like For Elektro Ljubljana d.d. (LJSE:ELOG)?

LJSE:ELOG
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The big shareholder groups in Elektro Ljubljana d.d. (LJSE:ELOG) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of €90m, Elektro Ljubljana d.d is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Elektro Ljubljana d.d.

View our latest analysis for Elektro Ljubljana d.d

ownership-breakdown
LJSE:ELOG Ownership Breakdown December 8th 2020

What Does The Institutional Ownership Tell Us About Elektro Ljubljana 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 Elektro Ljubljana 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 Elektro Ljubljana d.d's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
LJSE:ELOG Earnings and Revenue Growth December 8th 2020

Elektro Ljubljana d.d is not owned by hedge funds. Our data shows that Slovenia is the largest shareholder with 80% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. KD Skladi druzba za upravljanje, d.o.o. is the second largest shareholder owning 5.4% of common stock, and Triglav Skladi d. o. o. holds about 2.7% of the company stock.

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. 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 an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Shareholders would probably be interested to learn that insiders own shares in Elektro Ljubljana d.d.. In their own names, insiders own €1.5m worth of stock in the €90m company. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public holds a 11% stake in Elektro Ljubljana d.d. 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:

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. To that end, you should be aware of the 2 warning signs we've spotted with Elektro Ljubljana d.d .

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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