Do the institutions own shares of PJSC LUKOIL (MCX: LKOH)?
Every investor in PJSC LUKOIL (MCX: LKOH) should know the most powerful shareholder groups. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, âDon’t tell me what you think, tell me what you have in your wallet.
PJSC LUKOIL has a market cap of 4.8t yen, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. Let’s take a closer look at what different types of shareholders can tell us about PJSC LUKOIL.
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What does institutional ownership tell us about PJSC LUKOIL?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
PJSC LUKOIL already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking out the trajectory of PJSC LUKOIL’s past earnings (below). Of course, keep in mind that there are other factors to consider as well.
PJSC LUKOIL does not belong to hedge funds. The company’s CEO, Vagit Alekperov, is the largest shareholder with 28% of the shares outstanding. With 9.3% and 5.7% of shares in circulation, respectively, Leonid Fedun and Cyproman Services Limited are the second and third shareholders.
We dug a little deeper and found that 8 of the major shareholders make up around 50% of the ledger, implying that in addition to the major shareholders there are a few smaller shareholders, thus balancing each other’s interests somewhat. .
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
PJSC LUKOIL Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders retain a significant stake in PJSC LUKOIL. It is very interesting to see that the insiders have a significant 1.9 t stake in this 4.8 t company. Most would be happy to see the board invest alongside them. You may want to access this free chart showing recent insider trades.
General public property
The general public has a 33% stake in PJSC LUKOIL. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Owned by a private company
Our data indicates that private companies own 5.7% of the company’s shares. It may be worth pursuing the question further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. For example, we discovered 2 warning signs for PJSC LUKOIL (1 cannot be ignored!) Which you should be aware of before investing here.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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