Stock Analysis

Vår Energi AS' (OB:VAR) biggest owners are public companies who got richer after stock soared 6.8% last week

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OB:VAR
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If you want to know who really controls Vår Energi AS (OB:VAR), then you'll have to look at the makeup of its share registry. With 63% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, public companies benefitted the most after the company's market cap rose by kr5.6b last week.

Let's take a closer look to see what the different types of shareholders can tell us about Vår Energi.

However if you'd rather see where the opportunities and risks are within VAR's industry, you can check out our analysis on the NO Oil and Gas industry.

ownership-breakdown
OB:VAR Ownership Breakdown October 3rd 2022

What Does The Institutional Ownership Tell Us About Vår Energi?

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.

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

earnings-and-revenue-growth
OB:VAR Earnings and Revenue Growth October 3rd 2022

Vår Energi is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Eni S.p.A. with 63% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Point Resources Holding AS is the second largest shareholder owning 21% of common stock, and Capital Research and Management Company holds about 3.1% of the company stock.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Vår Energi

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. 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.

We note our data does not show any board members holding shares, personally. Given we are not picking up on insider ownership, we may have missing data. Therefore, it would be interesting to assess the CEO compensation and tenure, here.

General Public Ownership

With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vår Energi. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 21%, of the Vår Energi stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

Public companies currently own 63% of Vår Energi stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 3 warning signs we've spotted with Vår Energi (including 1 which is potentially serious) .

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 helping make it simple.

Find out whether Vår Energi is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About OB:VAR

Vår Energi

Var Energi AS, an independent upstream oil and gas company, explores for, develops, and produces hydrocarbons.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation1
Future Growth3
Past Performance3
Financial Health2
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Acceptable track record with moderate growth potential.