Could The Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.

With a market capitalization of €1.5b, Terna Energy Societe Anonyme Commercial Technical is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Terna Energy Societe Anonyme Commercial Technical.

Check out our latest analysis for Terna Energy Societe Anonyme Commercial Technical

What Does The Institutional Ownership Tell Us About Terna Energy Societe Anonyme Commercial Technical?

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 Terna Energy Societe Anonyme Commercial Technical. 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 Terna Energy Societe Anonyme Commercial Technical's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Terna Energy Societe Anonyme Commercial Technical. Looking at our data, we can see that the largest shareholder is GEK TERNA Holdings, Real Estate, Construction S.A. with 37% of shares outstanding. In comparison, the second and third largest shareholders hold about 22% and 4.9% of the stock. Goergios Peristeris, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

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.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Terna Energy Societe Anonyme Commercial Technical

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 insiders own a significant proportion of Terna Energy Societe Anonyme Commercial Technical Company. It has a market capitalization of just €1.5b, and insiders have €339m worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.

General Public Ownership

The general public holds a 24% stake in Terna Energy Societe Anonyme Commercial Technical. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

We can see that public companies hold 37% of the Terna Energy Societe Anonyme Commercial Technical shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Terna Energy Societe Anonyme Commercial Technical better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Terna Energy Societe Anonyme Commercial Technical (of which 1 can't be ignored!) you should know about.

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.

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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. 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.
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