Yahoo Finance After the recent decline, Proton Motor Power Systems Plc (LON:PPS) CEO Faiz Nahab's holdings have lost 21% of their value
Key Insights
Proton Motor Power Systems' significant insider ownership suggests inherent interests in company's expansion
82% of the company is held by a single shareholder (Faiz Nahab)
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
If you want to know who really controls Proton Motor Power Systems Plc (LON:PPS), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 83% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
And last week, insiders endured the biggest losses as the stock fell by 21%.
In the chart below, we zoom in on the different ownership groups of Proton Motor Power Systems.
See our latest analysis for Proton Motor Power Systems
What Does The Institutional Ownership Tell Us About Proton Motor Power Systems?
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.
Institutions have a very small stake in Proton Motor Power Systems. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Hedge funds don't have many shares in Proton Motor Power Systems. The company's CEO Faiz Nahab is the largest shareholder with 82% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. With 1.2% and 0.6% of the shares outstanding respectively, Puma Investment Management Limited and Helmut Gierse are the second and third largest shareholders. Interestingly, the third-largest shareholder, Helmut Gierse is also a Chairman of the Board, again, indicating strong insider ownership amongst the company's top shareholders.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Proton Motor Power Systems
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 the majority of Proton Motor Power Systems Plc. This means they can collectively make decisions for the company. So they have a UK£71m stake in this UK£85m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.
General Public Ownership
With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Proton Motor Power Systems. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Proton Motor Power Systems better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Proton Motor Power Systems you should be aware of, and 1 of them makes us a bit uncomfortable.
Of course this may not be the best stock to buy. So take a peek at this free 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.
