Do institutions invest heavily in shares of Sberbank of Russia (MCX: SBER)?

The large shareholder groups of Sberbank of Russia (MCX: SBER) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of small companies. Companies that were once state-owned tend to have less insider ownership.

Sberbank of Russia has a market cap of 6.9 t ₽, so it is too big to go under the radar. We expect institutions and retail investors to own some of the company. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. We can zoom in on the different ownership groups, to find out more about Sberbank of Russia.

Check out our latest analysis for Sberbank of Russia

MISX: Distribution of ownership of SBER on May 12, 2021

What does institutional ownership tell us about Sberbank of Russia?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that Sberbank of Russia has institutional investors; and they own a good portion of the shares of the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. When several institutions have a stock, there is always a risk that they are in a “crowded trade”. When such a trade goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Sberbank of Russia’s historical profits and revenues below, but keep in mind that there is always more to tell.

profit and revenue growth
MISX: SBER Profit and Revenue Growth May 12, 2021

We note that hedge funds do not have significant investments in Sberbank of Russia. The Ministry of Finance of the Russian Federation is currently the company’s largest shareholder with 52% of the shares outstanding. This implies that they have majority control over the future of the business. For context, the second largest shareholder owns around 3.6% of the outstanding shares, followed by a 1.8% stake by the third largest shareholder.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so it might be interesting to see what they are planning as well.

Insider property of Sberbank of Russia

The definition of an insider may differ slightly from country to country, but board members still count. Management ultimately responds to the advice. However, it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in certain circumstances.

Our data suggests that insiders own less than 1% of Sberbank of Russia in their own name. It’s a very large company, so it would be surprising to see insiders owning much of the company. Although their stake is less than 1%, we can see that the board members collectively own ₽ 616 million shares (at current prices). Arguably recent purchases and sales are equally important to consider. You can click here to see if any insiders have bought or sold.

General public property

With a 28% stake, the general public has some influence over Sberbank of Russia. While this group may not necessarily be able to do things, they can certainly have a real influence on the management of the business.

Next steps:

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. Be aware that Sberbank of Russia shows 3 warning signs in our investment analysis , and 1 of these is potentially serious …

But finally this is the future, not the past, which will determine the performance of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.

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 in which the balance sheet is dated. This may not be consistent with figures in annual reports.

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This Simply Wall St article is general in nature. It is not a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim 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 information. Simply Wall St has no position in any of the stocks mentioned.
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About Linda Stewart

Linda Stewart

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