With a 51% stake, Energiekontor AG (ETR:EKT) insiders have a lot riding on the company

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Key Insights

A look at the shareholders of Energiekontor AG (ETR:EKT) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 51% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

Let's delve deeper into each type of owner of Energiekontor, beginning with the chart below.

View our latest analysis for Energiekontor

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Energiekontor?

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 Energiekontor. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Energiekontor's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
earnings-and-revenue-growth

Energiekontor is not owned by hedge funds. The company's largest shareholder is Bodo Wilkens, with ownership of 26%. With 26% and 5.2% of the shares outstanding respectively, Günter Lammers and Union Asset Management Holding AG are the second and third largest shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.