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Could The IPO Doradztwo Kapitalowe S.A. (WSE:IOD) Ownership Structure Tell Us Something Useful?

Simply Wall St

A look at the shareholders of IPO Doradztwo Kapitalowe S.A. (WSE:IOD) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.'

With a market capitalization of zł2.2m, IPO Doradztwo Kapitalowe is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it's seems that institutional investors have not yet purchased shares. Let's delve deeper into each type of owner, to discover more about IOD.

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Check out our latest analysis for IPO Doradztwo Kapitalowe

WSE:IOD Ownership Summary, May 24th 2019

What Does The Lack Of Institutional Ownership Tell Us About IPO Doradztwo Kapitalowe?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. 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. IPO Doradztwo Kapitalowe might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

WSE:IOD Income Statement, May 24th 2019

Hedge funds don't have many shares in IPO Doradztwo Kapitalowe. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of IPO Doradztwo Kapitalowe

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.

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.

Our most recent data indicates that insiders own the majority of IPO Doradztwo Kapitalowe S.A.. This means they can collectively make decisions for the company. That means they own zł1.9m worth of shares in the zł2.2m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, with a 14% stake in the company, will not 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.