Tsakos Energy Navigation Limited (NYSE:TEN) surges 10%; individual investors who own 40% shares profited along with institutions

Key Insights

• Significant control over Tsakos Energy Navigation by individual investors implies that the general public has more power to influence management and governance-related decisions
• The top 17 shareholders own 50% of the company
• Insider ownership in Tsakos Energy Navigation is 19%

If you want to know who really controls Tsakos Energy Navigation Limited (NYSE:TEN), then you'll have to look at the makeup of its share registry. With 40% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While individual investors were the group that reaped the most benefits after last week’s 10% price gain, institutions also received a 23% cut.

In the chart below, we zoom in on the different ownership groups of Tsakos Energy Navigation.

Check out our latest analysis for Tsakos Energy Navigation

What Does The Institutional Ownership Tell Us About Tsakos Energy Navigation?

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.

Tsakos Energy Navigation 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 Tsakos Energy Navigation, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Tsakos Energy Navigation. Our data shows that Panagiotis Tsakos is the largest shareholder with 11% of shares outstanding. The second and third largest shareholders are Tsakos Holdings Foundation and Nikolas Tsakos, with an equal amount of shares to their name at 8.4%. Nikolas Tsakos, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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 Tsakos Energy Navigation

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 most recent data indicates that insiders own a reasonable proportion of Tsakos Energy Navigation Limited. It has a market capitalization of just US$532m, and insiders have US$103m worth of shares in their own names. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 40% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

Our data indicates that Private Companies hold 18%, of the company's shares. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Tsakos Energy Navigation (1 doesn't sit too well with us) that you should be aware of.

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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.