Stock Analysis

What Kind Of Investors Own Most Of Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY)?

ATSE:TENERGY
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If you want to know who really controls Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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.

Terna Energy Societe Anonyme Commercial Technical has a market capitalization of €1.5b, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Terna Energy Societe Anonyme Commercial Technical.

See our latest analysis for Terna Energy Societe Anonyme Commercial Technical

ownership-breakdown
ATSE:TENERGY Ownership Breakdown March 19th 2021

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

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.

Terna Energy Societe Anonyme Commercial Technical already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Terna Energy Societe Anonyme Commercial Technical, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
ATSE:TENERGY Earnings and Revenue Growth March 19th 2021

Hedge funds don't have many shares in Terna Energy Societe Anonyme Commercial Technical. Our data shows that GEK TERNA Holdings, Real Estate, Construction S.A. is the largest shareholder with 37% of shares outstanding. In comparison, the second and third largest shareholders hold about 20% and 4.9% of the stock. Goergios Peristeris, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Terna Energy Societe Anonyme Commercial Technical

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Terna Energy Societe Anonyme Commercial Technical Company. It has a market capitalization of just €1.5b, and insiders have €300m worth of shares in their own names. That's quite significant. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 25% ownership, the general public have some degree of sway over Terna Energy Societe Anonyme Commercial Technical. 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.

Public Company Ownership

We can see that public companies hold 37% of the Terna Energy Societe Anonyme Commercial Technical shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. Be aware that Terna Energy Societe Anonyme Commercial Technical is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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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