Stock Analysis

Insiders remain on top despite recent sales, own 46% of Charge Enterprises, Inc. (NASDAQ:CRGE)

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Key Insights

  • Charge Enterprises' significant insider ownership suggests inherent interests in company's expansion
  • A total of 4 investors have a majority stake in the company with 50% ownership
  • Recent sales by insiders

To get a sense of who is truly in control of Charge Enterprises, Inc. (NASDAQ:CRGE), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Despite recent sales, insiders own the most shares in the company. As a result, they stand to gain the most after the stock gained 11% in the past week.

Let's delve deeper into each type of owner of Charge Enterprises, beginning with the chart below.

See our latest analysis for Charge Enterprises

NasdaqGM:CRGE Ownership Breakdown March 17th 2023

What Does The Institutional Ownership Tell Us About Charge Enterprises?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Charge Enterprises 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Charge Enterprises' historic earnings and revenue below, but keep in mind there's always more to the story.

NasdaqGM:CRGE Earnings and Revenue Growth March 17th 2023

It would appear that 7.4% of Charge Enterprises shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Looking at our data, we can see that the largest shareholder is the CEO Andrew Fox with 19% of shares outstanding. Greg Goldberg is the second largest shareholder owning 17% of common stock, and KORR Acquisitions Group, Inc holds about 7.4% of the company stock.

Our research also brought to light the fact that roughly 50% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business.

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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Charge Enterprises

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 information suggests that insiders maintain a significant holding in Charge Enterprises, Inc.. Insiders own US$117m worth of shares in the US$252m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Charge Enterprises. 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.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Charge Enterprises is showing 3 warning signs in our investment analysis , 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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