The big shareholder groups in PowerHouse Energy Group Plc (LON:PHE) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. PowerHouse Energy Group is a smaller company with a market capitalization of UK£174m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about PowerHouse Energy Group. View our latest analysis for PowerHouse Energy Group ownership-breakdown What Does The Institutional Ownership Tell Us About PowerHouse Energy Group? 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. As you can see, institutional investors have a fair amount of stake in PowerHouse Energy Group. 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 PowerHouse Energy Group's earnings history below. Of course, the future is what really matters. earnings-and-revenue-growth PowerHouse Energy Group is not owned by hedge funds. Josh White is currently the largest shareholder, with 9.5% of shares outstanding. With 6.3% and 5.3% of the shares outstanding respectively, Ben White and Serena White-Reyes are the second and third largest shareholders. After doing some more digging, we found that the top 14 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. 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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar. Insider Ownership Of PowerHouse Energy Group While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. 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. It seems insiders own a significant proportion of PowerHouse Energy Group Plc. Insiders own UK£50m worth of shares in the UK£174m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling. General Public Ownership The general public-- including retail investors -- own 33% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand PowerHouse Energy Group better, we need to consider many other factors. For example, we've discovered 4 warning signs for PowerHouse Energy Group (2 are a bit concerning!) that you should be aware of before investing here. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data. 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. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.
What Is The Ownership Structure Like For PowerHouse Energy Group Plc (LON:PHE)?
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