In This Article:
Key Insights
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Kinetiko Energy's significant insider ownership suggests inherent interests in company's expansion
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54% of the business is held by the top 7 shareholders
To get a sense of who is truly in control of Kinetiko Energy Limited (ASX:KKO), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are individual insiders with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Having purchased shares recently, insiders must be glad after market cap hit AU$158m last week.
Let's take a closer look to see what the different types of shareholders can tell us about Kinetiko Energy.
View our latest analysis for Kinetiko Energy
What Does The Lack Of Institutional Ownership Tell Us About Kinetiko Energy?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Kinetiko Energy, for yourself, below.
We note that hedge funds don't have a meaningful investment in Kinetiko Energy. Donald Mzolisa Ncube is currently the company's largest shareholder with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.8% and 7.7% of the stock.
We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Kinetiko Energy
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.