If you want to know who really controls Clean Energy Fuels Corp. (NASDAQ:CLNE), then you’ll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. 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.
Clean Energy Fuels is a smaller company with a market capitalization of US$489m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Clean Energy Fuels.
What Does The Institutional Ownership Tell Us About Clean Energy Fuels?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Clean Energy Fuels already has institutions on the share registry. Indeed, they own 30% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Clean Energy Fuels, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don’t have many shares in Clean Energy Fuels. Looking at our data, we can see that the largest shareholder is TOTAL S.A. with 25% of shares outstanding. With 6.4% and 5.4% of the shares outstanding respectively, Thomas Pickens and Dimensional Fund Advisors L.P. are the second and third largest shareholders.
On further inspection, we found that 51% of the share register is owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Clean Energy Fuels
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
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.
I can report that insiders do own shares in Clean Energy Fuels Corp.. As individuals, the insiders collectively own US$41m worth of the US$489m company. When analysing a company, looking at ownership may seem a logical place to start. But ultimately, many risks exist within the business itself, rather than its shareholders. For example, we’ve discovered 1 warning sign for Clean Energy Fuels which any shareholder or potential investor should be aware of.
General Public Ownership
The general public holds a 37% stake in CLNE. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
It appears to us that public companies own 25% of CLNE. We can’t be certain, but this is quite possible this is a strategic stake. The businesses may be similar, or work together.
It’s always worth thinking about the different groups who own shares in a company. But to understand Clean Energy Fuels better, we need to consider many other factors.
I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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