Could Hurtimex SA's (WSE:HRT) Investor Composition Influence The Stock Price?

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A look at the shareholders of Hurtimex SA (WSE:HRT) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

Hurtimex is a smaller company with a market capitalization of zł4.1m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about HRT.

Check out our latest analysis for Hurtimex

WSE:HRT Ownership Summary, June 10th 2019
WSE:HRT Ownership Summary, June 10th 2019

What Does The Lack Of Institutional Ownership Tell Us About Hurtimex?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at 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. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Hurtimex, for yourself, below.

WSE:HRT Income Statement, June 10th 2019
WSE:HRT Income Statement, June 10th 2019

Hurtimex is not owned by hedge funds. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hurtimex

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.

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 most recent data indicates that insiders own a reasonable proportion of Hurtimex SA. Insiders have a zł817k stake in this zł4.1m business. 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.