The major shareholder groups of Zephyr Energy plc (LON: ZPHR) have power over the company. Institutions often own stocks in larger companies, and we expect insiders to own a significant percentage of the smaller ones. Companies that were previously publicly owned tend to have less insider ownership.
Zephyr Energy is not a large company by global standards. It has a market capitalization of £ 81 million, which means it would not have the attention of many institutional investors. In the graph below we can see that institutional investors have bought into the company. We can zoom in on the various groups of owners to learn more about Zephyr Energy.
Check out our latest analysis for Zephyr Energy
What does institutional ownership tell us about Zephyr Energy?
Institutional investors often compare their own returns to the returns of a frequently tracked index. As a result, they typically consider buying larger companies that are included in the relevant benchmark index.
As you can see, there are institutional investors involved in Zephyr Energy. This may suggest that the company has some credibility in the investment community. However, it is best to be careful not to rely on the supposed validation of institutional investors. Sometimes they get it wrong too. If several institutions change their minds about a share at the same time, the share price could fall quickly. So it’s worth checking out Zephyr Energy’s earnings history below. Of course, the future is what really matters.
Investors should note that institutions actually own more than half of the company, so together they can exert significant power. Zephyr Energy is not owned by any hedge funds. Jarvis Securities plc, Asset Management Arm, is currently the company’s largest shareholder with 23% of the shares outstanding. Origin Creek Energy Llc and Tyndall Investment Management are the second and third largest shareholders, with 11% and 7.8% of the shares outstanding, respectively.
On closer inspection, we found that 51% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the company’s decisions.
While it makes sense to examine institutional ownership data for a company, it also makes sense to examine analyst sentiment to know which way the wind is blowing. As far as I can tell, there’s no analyst coverage of the company, so it’s likely flying under the radar.
Inside ownership of Zephyr Energy
The definition of corporate insider can be subjective and varies depending on the legal system. Our data reflects individual insiders and at least includes board members. The company management is subordinate to the board of directors and this should represent the interests of the shareholders. It is noteworthy that sometimes top managers sit on the board themselves.
I generally think insider ownership is a good thing. In some cases, however, it makes it difficult for other shareholders to hold the board responsible for decisions.
According to our information, Zephyr Energy plc insiders own less than 1% of the company. However, we point out that it is possible that insiders have an indirect interest through a private company or another corporate structure. It appears that the board of directors holds shares worth approximately £ 761,000. This compares to a market cap of £ 81m UK. Many smaller company investors prefer to see the board invest more heavily. You can click here to see if these Insiders bought or sold.
General public property
The general public, with a 26% stake in the company, will not be easily ignored. While this size of ownership is substantial, it may not be enough to change company policy if the decision does not coincide with other major shareholders.
Ownership of private companies
Our data shows that private companies hold 12% of the company’s shares. It is difficult to draw any conclusions from this fact alone, so it is worth investigating who owns these private companies. Sometimes insiders or other related parties hold shares in a public company through a separate private company.
I find it very interesting to see who exactly owns a company. But to really gain insight, we need to consider other information as well. Take risks, for example – Zephyr Energy has 3 warning signs (and 2 that matter) we think you should know.
Naturally This may not be the best stock to buy. So check this out for free for free List of interesting companies.
Note: The numbers in this article are calculated using data for the past twelve months, which refers to the twelve month period ending on the last day of the month in which the financial statements are dated. This may not match the figures in the financial statements.
This article from Simply Wall St is of a general nature. We only provide comments based on historical data and analyst projections using an unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. Our goal is to provide you with long-term, focused analysis based on fundamentals. Note that our analysis may not take into account the latest company announcements or quality material, which may be sensitive to the price. Simply Wall St has no position in the stocks mentioned.
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