What does the ownership structure look like for i3 Energy Plc (LON: I3E)?

A look at the shareholders of i3 Energy Plc (LON: I3E) can tell us which group is more powerful. Insiders often own a large portion of younger and smaller firms, while larger firms tend to have institutions as shareholders. Companies that were previously state-owned tend to have fewer insiders.

i3 Energy is a smaller company with a market cap of £ 140million, so it may still go under the radar of many institutional investors. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. We can zoom in on the different property groups, to find out more about i3 Energy.

Check out our latest review for i3 Energy

AIM: Distribution of I3E ownership on December 23, 2021

What does institutional ownership tell us about i3 Energy?

Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that i3 Energy has institutional investors; and they own a large portion of the company’s stock. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out the trajectory of i3 Energy’s past gains (below). Of course, keep in mind that there are other factors to consider as well.

profit and revenue growth
GOAL: I3E profit and revenue growth on December 23, 2021

Institutional investors own more than 50% of the company, so together they can probably strongly influence the decisions of the board. It appears that 26% of i3 Energy’s shares are controlled by hedge funds. This is worth noting, as hedge funds are often quite active investors who can try to influence management. Many want to see value creation (and a higher stock price) in the short to medium term. Looking at our data, we can see that the largest shareholder is Bybrook Capital LLP with 26% of the shares outstanding. Premier Fund Managers Limited is the second largest shareholder holding 14% of the common shares, and Slater Investments Limited owns approximately 9.3% of the shares of the company.

To make our study more interesting, we found that the 4 main shareholders control more than half of the company, which implies that this group has a considerable influence on the decision-making of the company.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. While there is some coverage from analysts, the company is likely not widely covered. He could therefore attract more attention, at the bottom of the track.

Insider property of i3 Energy

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

We can report that insiders own shares in i3 Energy Plc. As individuals, the insiders collectively own £ 2.5million worth of the UK company of £ 140million. It’s good to see some insider investing, but we generally like to see higher insider holdings. It might be worth checking out if these insiders have bought.

General public property

With a 13% stake, the general public, made up mainly of individual investors, has some influence over i3 Energy. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.

Private shareholders

With a 6.1% stake, private equity firms are able to play a role in shaping corporate strategy with an emphasis on value creation. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may look to sell and redeploy their capital elsewhere.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Concrete example: we have spotted 2 warning signs for i3 Energy you must be aware.

But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.


Source link

Comments are closed.