Individual investors invested in Creotech Instruments S.A. (WSE:CRI) up 12% last week, insiders too were rewarded

Key Insights

• The considerable ownership by individual investors in Creotech Instruments indicates that they collectively have a greater say in management and business strategy
• 52% of the business is held by the top 7 shareholders
• 34% of Creotech Instruments is held by insiders

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To get a sense of who is truly in control of Creotech Instruments S.A. (WSE:CRI), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 35% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While individual investors were the group that reaped the most benefits after last week’s 12% price gain, insiders also received a 34% cut.

Let's delve deeper into each type of owner of Creotech Instruments, beginning with the chart below.

Check out our latest analysis for Creotech Instruments

What Does The Institutional Ownership Tell Us About Creotech Instruments?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Creotech Instruments. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Creotech Instruments' historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Creotech Instruments. Our data shows that Agencja Rozwoju Przemyslu S.A. is the largest shareholder with 9.5% of shares outstanding. The second and third largest shareholders are Grzegorz Brona and Pawel Kasprowicz, with an equal amount of shares to their name at 7.4%. Grzegorz Brona, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Creotech Instruments

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.

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 information suggests that insiders maintain a significant holding in Creotech Instruments S.A.. Insiders own zł413m worth of shares in the zł1.2b 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.

General Public Ownership

The general public, who are usually individual investors, hold a 35% stake in Creotech Instruments. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Creotech Instruments better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Creotech Instruments (including 1 which doesn't sit too well with us) .

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.