In This Article:
Key Insights
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Meridian Energy's significant state or government ownership suggests that the key decisions are influenced by shareholders from the larger public
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51% of the company is held by a single shareholder (New Zealand)
A look at the shareholders of Meridian Energy Limited (NZSE:MEL) can tell us which group is most powerful. We can see that state or government own the lion's share in the company with 51% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Individual investors, on the other hand, account for 36% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about Meridian Energy.
View our latest analysis for Meridian Energy
What Does The Institutional Ownership Tell Us About Meridian 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 Meridian 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Meridian Energy's earnings history below. Of course, the future is what really matters.
Meridian Energy is not owned by hedge funds. Our data shows that New Zealand is the largest shareholder with 51% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 1.9% and 1.8% of the shares outstanding respectively, The Vanguard Group, Inc. and Accident Compensation Corporation, Asset Management Arm are the second and third largest shareholders.
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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Meridian Energy
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.