U.S. markets closed
  • S&P 500

    4,076.57
    -3.54 (-0.09%)
     
  • Dow 30

    34,395.01
    -194.76 (-0.56%)
     
  • Nasdaq

    11,482.45
    +14.45 (+0.13%)
     
  • Russell 2000

    1,881.68
    -4.90 (-0.26%)
     
  • Crude Oil

    81.45
    +0.23 (+0.28%)
     
  • Gold

    1,816.50
    +1.30 (+0.07%)
     
  • Silver

    22.94
    +0.10 (+0.43%)
     
  • EUR/USD

    1.0532
    +0.0124 (+1.19%)
     
  • 10-Yr Bond

    3.5290
    -0.1740 (-4.70%)
     
  • GBP/USD

    1.2255
    +0.0193 (+1.60%)
     
  • USD/JPY

    135.2740
    -2.8060 (-2.03%)
     
  • BTC-USD

    16,966.27
    -209.46 (-1.22%)
     
  • CMC Crypto 200

    401.44
    -4.71 (-1.16%)
     
  • FTSE 100

    7,558.49
    -14.56 (-0.19%)
     
  • Nikkei 225

    28,226.08
    +257.09 (+0.92%)
     

Vertex Energy, Inc. (NASDAQ:VTNR) is a favorite amongst institutional investors who own 51%

A look at the shareholders of Vertex Energy, Inc. (NASDAQ:VTNR) can tell us which group is most powerful. With 51% stake, institutions 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).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

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

Check out our latest analysis for Vertex Energy

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Vertex Energy?

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.

We can see that Vertex Energy does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Vertex Energy's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
earnings-and-revenue-growth

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don't have a meaningful investment in Vertex Energy. Our data shows that State Street Global Advisors, Inc. is the largest shareholder with 9.5% of shares outstanding. For context, the second largest shareholder holds about 8.9% of the shares outstanding, followed by an ownership of 4.8% by the third-largest shareholder. Benjamin Cowart, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

After doing some more digging, we found that the top 16 have the combined ownership of 51% 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 Vertex Energy

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders maintain a significant holding in Vertex Energy, Inc.. Insiders own US$116m worth of shares in the US$596m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Vertex Energy. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 3 warning signs for Vertex Energy (1 doesn't sit too well with us!) that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here