Institutions' substantial holdings in Rockhopper Exploration implies that they have significant influence over the company's share price
A total of 25 investors have a majority stake in the company with 46% ownership
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
Every investor in Rockhopper Exploration plc (LON:RKH) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 46% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And last week, institutional investors ended up benefitting the most after the company hit UK£253m in market cap. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 284%.
Let's delve deeper into each type of owner of Rockhopper Exploration, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Rockhopper Exploration?
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.
Rockhopper Exploration 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. 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 Rockhopper Exploration's earnings history below. Of course, the future is what really matters.
AIM:RKH Earnings and Revenue Growth January 19th 2025
It looks like hedge funds own 7.7% of Rockhopper Exploration shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Our data shows that SRM Advisors (Monaco) SAM is the largest shareholder with 7.7% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.6% and 5.5%, of the shares outstanding, respectively. Additionally, the company's CEO Samuel Moody directly holds 0.7% of the total shares outstanding.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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 Rockhopper Exploration
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our data suggests that insiders own under 1% of Rockhopper Exploration plc in their own names. It seems the board members have no more than UK£2.0m worth of shares in the UK£253m company. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 45% stake in Rockhopper Exploration. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Rockhopper Exploration has 4 warning signs (and 3 which are a bit unpleasant) we think you should know about.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
