What You Need To Know About VH Global Sustainable Energy Opportunities plc's (LON:GSEO) Investor Composition
A look at the shareholders of VH Global Sustainable Energy Opportunities plc (LON:GSEO) can tell us which group is most powerful. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.
VH Global Sustainable Energy Opportunities is not a large company by global standards. It has a market capitalization of UK£463m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholders can tell us about VH Global Sustainable Energy Opportunities.
See our latest analysis for VH Global Sustainable Energy Opportunities
What Does The Institutional Ownership Tell Us About VH Global Sustainable Energy Opportunities?
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.
VH Global Sustainable Energy Opportunities already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 VH Global Sustainable Energy Opportunities, (below). Of course, keep in mind that there are other factors to consider, too.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in VH Global Sustainable Energy Opportunities. Quilter Cheviot Limited is currently the largest shareholder, with 12% of shares outstanding. With 7.4% and 4.7% of the shares outstanding respectively, Sarasin & Partners LLP and Courtiers Asset Management Limited are the second and third largest shareholders.
After doing some more digging, we found that the top 11 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of VH Global Sustainable Energy Opportunities
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.
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.
Our information suggests that VH Global Sustainable Energy Opportunities plc insiders own under 1% of the company. It has a market capitalization of just UK£463m, and the board has only UK£263k worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over VH Global Sustainable Energy Opportunities. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand VH Global Sustainable Energy Opportunities better, we need to consider many other factors. For example, we've discovered 3 warning signs for VH Global Sustainable Energy Opportunities (1 can't be ignored!) that you should be aware of before investing here.
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
