Insiders are the top stockholders in Energiekontor AG (ETR:EKT), and the recent 5.8% drop might have disappointed them
- Significant insider control over Energiekontor implies vested interests in company growth
- 51% of the business is held by the top 2 shareholders
- Institutional ownership in Energiekontor is 26%
A look at the shareholders of Energiekontor AG (ETR:EKT) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And last week, insiders endured the biggest losses as the stock fell by 5.8%.
Let's delve deeper into each type of owner of Energiekontor, beginning with the chart below.
View our latest analysis for Energiekontor
What Does The Institutional Ownership Tell Us About Energiekontor?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
As you can see, institutional investors have a fair amount of stake in Energiekontor. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Energiekontor's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Energiekontor. Our data shows that Bodo Wilkens is the largest shareholder with 25% of shares outstanding. For context, the second largest shareholder holds about 25% of the shares outstanding, followed by an ownership of 5.2% by the third-largest shareholder.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Energiekontor
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
It seems that insiders own more than half the Energiekontor AG stock. This gives them a lot of power. That means they own €441m worth of shares in the €867m company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, who are usually individual investors, hold a 23% stake in Energiekontor. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 2 warning signs for Energiekontor that you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
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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.
Energiekontor AG, a project developer, engages in the planning, construction, and operation of wind farms and solar parks in England, Scotland, Portugal, the United States.
Solid track record with moderate growth potential.