Private companies invested in Columbus Energy S.A. (WSE:CLC) copped the brunt of last week's zł67m market cap decline
Key Insights The considerable ownership by private companies in Columbus Energy indicates that they collectively have a... WSE:CLC has published a report showing that private companies in Columbus Energy have a greater say in management and business strategy than institutional investors. This indicates that the group holding the most number of shares in the company, around 41%, is private companies. The report also found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company’s decisions. This article discusses the importance of understanding these shareholders and understanding their investment process.
Published : 7 days ago by Simply Wall St in
• The considerable ownership by private companies in Columbus Energy indicates that they collectively have a greater say in management and business strategy
• A total of 2 investors have a majority stake in the company with 61% ownership
• 39% of Columbus Energy is held by insiders
A look at the shareholders of Columbus Energy S.A. (WSE:CLC) can tell us which group is most powerful. The group holding the most number of shares in the company, around 41% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Following a 11% decrease in the stock price last week, private companies suffered the most losses, but insiders who own 39% stock also took a hit.
Let's take a closer look to see what the different types of shareholders can tell us about Columbus Energy.
What Does The Lack Of Institutional Ownership Tell Us About Columbus Energy?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Columbus Energy might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
We note that hedge funds don't have a meaningful investment in Columbus Energy. Looking at our data, we can see that the largest shareholder is Gemstone S.A. with 41% of shares outstanding. Piotr Kurczewski is the second largest shareholder owning 20% of common stock, and Dawid Zielinski holds about 6.9% of the company stock.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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.
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.
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 most recent data indicates that insiders own a reasonable proportion of Columbus Energy S.A.. Insiders own zł216m worth of shares in the zł556m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
The general public-- including retail investors -- own 17% 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.
Our data indicates that Private Companies hold 41%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Columbus Energy (at least 2 which can't be ignored) , and understanding them should be part of your investment process.
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.