With 41% ownership in PowerHouse Energy Group Plc (LON:PHE), institutional investors have a lot riding on the business

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editorial-team@simplywallst.com (Simply Wall St)

Wed, May 29, 2024, 2:39 AM 4 min read

A look at the shareholders of PowerHouse Energy Group Plc (LON:PHE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 41% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Last week’s 51% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 195% and last week's gain would have been more than welcomed.

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

See our latest analysis for PowerHouse Energy Group

ownership-breakdown — AIM:PHE Ownership Breakdown May 29th 2024

What Does The Institutional Ownership Tell Us About PowerHouse Energy Group?

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.

PowerHouse Energy Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at PowerHouse Energy Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — AIM:PHE Earnings and Revenue Growth May 29th 2024

We note that hedge funds don't have a meaningful investment in PowerHouse Energy Group. Josh White is currently the largest shareholder, with 7.4% of shares outstanding. For context, the second largest shareholder holds about 5.2% of the shares outstanding, followed by an ownership of 4.6% by the third-largest shareholder.

After doing some more digging, we found that the top 16 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of PowerHouse Energy Group

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 PowerHouse Energy Group Plc. Insiders have a UK£16m stake in this UK£80m business. 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

The general public, who are usually individual investors, hold a 39% stake in PowerHouse Energy Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand PowerHouse Energy Group better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with PowerHouse Energy Group (including 3 which are a bit concerning) .

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.