Do Insiders Own Shares In Pragma Inkaso S.A. (WSE:PRI)?

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If you want to know who really controls Pragma Inkaso S.A. (WSE:PRI), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'

Pragma Inkaso is not a large company by global standards. It has a market capitalization of zł26m, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about PRI.

See our latest analysis for Pragma Inkaso

WSE:PRI Ownership Summary, May 28th 2019
WSE:PRI Ownership Summary, May 28th 2019

What Does The Institutional Ownership Tell Us About Pragma Inkaso?

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.

We can see that Pragma Inkaso does have institutional investors; and they hold 32% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Pragma Inkaso, (below). Of course, keep in mind that there are other factors to consider, too.

WSE:PRI Income Statement, May 28th 2019
WSE:PRI Income Statement, May 28th 2019

Pragma Inkaso 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 Pragma Inkaso

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 some shares in Pragma Inkaso S.A.. As individuals, the insiders collectively own zł2.5m worth of the zł26m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.