In This Article:
Key Insights
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Given the large stake in the stock by institutions, Pensana's stock price might be vulnerable to their trading decisions
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A total of 6 investors have a majority stake in the company with 51% ownership
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Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
A look at the shareholders of Pensana Plc (LON:PRE) can tell us which group is most powerful. The group holding the most number of shares in the company, around 33% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutional investors would appreciate the 12% increase in share price last week, given their one-year losses have totalled a disappointing 1.6%.
Let's take a closer look to see what the different types of shareholders can tell us about Pensana.
View our latest analysis for Pensana
What Does The Institutional Ownership Tell Us About Pensana?
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.
Pensana 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 Pensana'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 Pensana. Our data shows that Fundo Soberano de Angola is the largest shareholder with 26% of shares outstanding. With 12% and 5.0% of the shares outstanding respectively, M&G Investment Management Limited and Paul Atherley are the second and third largest shareholders. Paul Atherley, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Furthermore, CEO Timothy George is the owner of 0.9% of the company's shares.
On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.