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Key Insights

• Berkeley Energia's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public

• 41% of the business is held by the top 23 shareholders

• 37% of Berkeley Energia is held by Institutions

To get a sense of who is truly in control of Berkeley Energia Limited (ASX:BKY), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions who own 37% came under pressure after market cap dropped to AU$152m last week,retail investors took the most losses.

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

View our latest analysis for Berkeley Energia

What Does The Institutional Ownership Tell Us About Berkeley Energia?

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.

Berkeley Energia 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 Berkeley Energia, (below). Of course, keep in mind that there are other factors to consider, too.

Berkeley Energia is not owned by hedge funds. Paradice Investment Management Pty Ltd. is currently the largest shareholder, with 9.9% of shares outstanding. For context, the second largest shareholder holds about 8.2% of the shares outstanding, followed by an ownership of 6.4% by the third-largest shareholder. Furthermore, CEO Robert Behets is the owner of 0.6% of the company's shares.

A deeper look at our ownership data shows that the top 23 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.