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If you want to know who really controls Energy Technologies Limited (ASX:EGY), then you’ll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’
Energy Technologies is a smaller company with a market capitalization of AU$3.1m, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions are not on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about EGY.
See our latest analysis for Energy Technologies
What Does The Lack Of Institutional Ownership Tell Us About Energy Technologies?
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 fund under management, so the institition does not bother to look closely at the company. On the other hand, it’s always possible that professional investors are avoiding a company because they don’t think it’s the best place for their money. Energy Technologies’s earnings and revenue track record (below) may not be compelling to institutional investors — or they simply might not have looked at the business closely.
Hedge funds don’t have many shares in Energy Technologies. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Energy Technologies
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own the majority of Energy Technologies Limited. This means they can collectively make decisions for the company. So they have a AU$2.2m stake in this AU$3.1m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.