Shoper S.A.'s (WSE:SHO) 11% gain last week benefited both private equity firms who own 25% as well as insiders
Simply Wall St · 6d ago

Key Insights

  • The considerable ownership by private equity firms in Shoper indicates that they collectively have a greater say in management and business strategy
  • 61% of the business is held by the top 4 shareholders
  • Insiders own 24% of Shoper

Every investor in Shoper S.A. (WSE:SHO) should be aware of the most powerful shareholder groups. We can see that private equity firms own the lion's share in the company with 25% ownership. 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% increase in the stock price last week, private equity firms profited the most, but insiders who own 24% stock also stood to gain from the increase.

Let's take a closer look to see what the different types of shareholders can tell us about Shoper.

See our latest analysis for Shoper

ownership-breakdown
WSE:SHO Ownership Breakdown September 15th 2023

What Does The Institutional Ownership Tell Us About Shoper?

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 Shoper. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Shoper's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
WSE:SHO Earnings and Revenue Growth September 15th 2023

Hedge funds don't have many shares in Shoper. Our data shows that Value4Capital is the largest shareholder with 25% of shares outstanding. The second and third largest shareholders are Kff S.A R.L and Rafal Krawczyk, with an equal amount of shares to their name at 12%. Rafal Krawczyk, who is the third-largest shareholder, also happens to hold the title of Member of Supervisory Board.

On looking further, we found that 61% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Shoper

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.

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 most recent data indicates that insiders own a reasonable proportion of Shoper S.A.. It has a market capitalization of just zł1.1b, and insiders have zł257m worth of shares in their own names. 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.

General Public Ownership

The general public, who are usually individual investors, hold a 14% stake in Shoper. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

With a stake of 25%, private equity firms could influence the Shoper board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

We can see that Private Companies own 24%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. Take risks for example - Shoper has 1 warning sign we think you should be aware of.

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.