Empire Energy Group Limited's (ASX:EEG) top owners are individual investors with 52% stake, while25% is held by insiders
Every investor in Empire Energy Group Limited (ASX:EEG) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual investors with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual insiders on the other hand have a 25% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's take a closer look to see what the different types of shareholders can tell us about Empire Energy Group.
See our latest analysis for Empire Energy Group
What Does The Institutional Ownership Tell Us About Empire Energy 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.
Empire 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. 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 Empire Energy 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 Empire Energy Group. Looking at our data, we can see that the largest shareholder is Paul Fudge with 18% of shares outstanding. With 6.7% and 4.2% of the shares outstanding respectively, Elphinstone Holdings Pty Ltd. and Global Energy and Resources Development Limited are the second and third largest shareholders.
A deeper look at our ownership data shows that the top 22 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.
Insider Ownership Of Empire Energy Group
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.