In This Article:
Key Insights
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The considerable ownership by individual investors in Genie Energy indicates that they collectively have a greater say in management and business strategy
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A total of 22 investors have a majority stake in the company with 50% ownership
A look at the shareholders of Genie Energy Ltd. (NYSE:GNE) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, institutions make up 36% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
Let's delve deeper into each type of owner of Genie Energy, beginning with the chart below.
See our latest analysis for Genie Energy
What Does The Institutional Ownership Tell Us About Genie Energy?
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.
We can see that Genie Energy does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Genie Energy's historic earnings and revenue below, but keep in mind there's always more to the story.
We note that hedge funds don't have a meaningful investment in Genie Energy. The company's largest shareholder is Howard Jonas, with ownership of 17%. For context, the second largest shareholder holds about 4.5% of the shares outstanding, followed by an ownership of 4.3% by the third-largest shareholder. Furthermore, CEO Michael Stein is the owner of 1.4% of the company's shares.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 22 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.