A look at the shareholders of Cenntro Electric Group Limited (NASDAQ:CENN) can tell us which group is most powerful. With 54% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While insiders who own 30% came under pressure after market cap dropped to US$169m last week,individual investors took the most losses.
In the chart below, we zoom in on the different ownership groups of Cenntro Electric Group.
View our latest analysis for Cenntro Electric Group
What Does The Institutional Ownership Tell Us About Cenntro Electric Group?
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.
As you can see, institutional investors have a fair amount of stake in Cenntro Electric Group. 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 Cenntro Electric Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Cenntro Electric Group. Looking at our data, we can see that the largest shareholder is the CEO Peter Zuguang Wang with 27% of shares outstanding. China Leader Group Limited is the second largest shareholder owning 8.0% of common stock, and BlackRock, Inc. holds about 3.6% of the company stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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 Cenntro Electric Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.