Stock Analysis

Individual investors account for 44% of Kolibri Global Energy Inc.'s (TSE:KEI) ownership, while hedge funds account for 36%

TSX:KEI
Source: Shutterstock

Key Insights

  • The considerable ownership by individual investors in Kolibri Global Energy indicates that they collectively have a greater say in management and business strategy
  • A total of 5 investors have a majority stake in the company with 52% ownership
  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Kolibri Global Energy Inc. (TSE:KEI) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 44% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Hedge funds, on the other hand, account for 36% of the company's stockholders.

Let's delve deeper into each type of owner of Kolibri Global Energy, beginning with the chart below.

View our latest analysis for Kolibri Global Energy

ownership-breakdown
TSX:KEI Ownership Breakdown May 28th 2024

What Does The Institutional Ownership Tell Us About Kolibri Global Energy?

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.

As you can see, institutional investors have a fair amount of stake in Kolibri Global Energy. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Kolibri Global Energy's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSX:KEI Earnings and Revenue Growth May 28th 2024

It looks like hedge funds own 36% of Kolibri Global Energy shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Looking at our data, we can see that the largest shareholder is Polygon Global Partners LLP with 20% of shares outstanding. Livermore Partners LLC is the second largest shareholder owning 16% of common stock, and Harrington Global Limited holds about 11% of the company stock. Additionally, the company's CEO Wolf Regener directly holds 0.8% of the total shares outstanding.

On looking further, we found that 52% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Kolibri Global Energy

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.

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.

We can see that insiders own shares in Kolibri Global Energy Inc.. In their own names, insiders own CA$1.9m worth of stock in the CA$165m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 44% stake in Kolibri Global Energy. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 11% stake in Kolibri Global Energy. This suggests they can be influential in key policy decisions. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Kolibri Global Energy .

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.

Valuation is complex, but we're here to simplify it.

Discover if Kolibri Global Energy might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.