Greenvolt - Energias Renováveis, S.A.'s (ELI:GVOLT) market cap dropped €45m last week; Public companies bore the brunt

By
Simply Wall St
Published
November 19, 2021
ENXTLS:GVOLT
Source: Shutterstock

Every investor in Greenvolt - Energias Renováveis, S.A. (ELI:GVOLT) should be aware of the most powerful shareholder groups. We can see that public companies own the lion's share in the company with 62% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And following last week's 5.6% decline in share price, public companies suffered the most losses.

Let's delve deeper into each type of owner of Greenvolt - Energias Renováveis, beginning with the chart below.

See our latest analysis for Greenvolt - Energias Renováveis

ownership-breakdown
ENXTLS:GVOLT Ownership Breakdown November 20th 2021

What Does The Institutional Ownership Tell Us About Greenvolt - Energias Renováveis?

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 Greenvolt - Energias Renováveis. 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. 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 Greenvolt - Energias Renováveis' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
ENXTLS:GVOLT Earnings and Revenue Growth November 20th 2021

Greenvolt - Energias Renováveis is not owned by hedge funds. Altri, SGPS, S.A. is currently the company's largest shareholder with 62% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 9.2% of the shares outstanding, followed by an ownership of 2.8% by the third-largest shareholder.

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 Greenvolt - Energias Renováveis

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 data cannot confirm that board members are holding shares personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.

General Public Ownership

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Greenvolt - Energias Renováveis. 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 15%, of the Greenvolt - Energias Renováveis stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Public Company Ownership

Public companies currently own 62% of Greenvolt - Energias Renováveis 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Greenvolt - Energias Renováveis (of which 1 makes us a bit uncomfortable!) 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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