Is Greencoat Renewables PLC (ISE:GRP) Popular Amongst Institutions?

By
Simply Wall St
Published
November 09, 2021
ISE:GRP
Source: Shutterstock

Every investor in Greencoat Renewables PLC (ISE:GRP) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

Greencoat Renewables isn't enormous, but it's not particularly small either. It has a market capitalization of €974m, which means it would generally expect to see some institutions on the share registry. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Greencoat Renewables.

View our latest analysis for Greencoat Renewables

ownership-breakdown
ISE:GRP Ownership Breakdown November 10th 2021

What Does The Institutional Ownership Tell Us About Greencoat Renewables?

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 Greencoat Renewables. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Greencoat Renewables, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
ISE:GRP Earnings and Revenue Growth November 10th 2021

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Greencoat Renewables. BlackRock, Inc. is currently the largest shareholder, with 6.9% of shares outstanding. Brewin Dolphin Wealth Management Limited is the second largest shareholder owning 6.4% of common stock, and BNY Mellon Asset Management holds about 5.2% of the company stock.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Greencoat Renewables

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.

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.

Our information suggests that Greencoat Renewables PLC insiders own under 1% of the company. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around €505k worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public holds a 40% stake in Greencoat Renewables. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Greencoat Renewables better, we need to consider many other factors. Be aware that Greencoat Renewables is showing 4 warning signs in our investment analysis , and 2 of those are potentially serious...

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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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