To get a sense of who really controls Pharos Energy plc (LON:PHAR), it’s important to understand the company’s ownership structure. And the group holding the biggest piece of the pie are institutions with 52% ownership. In other words, the group will gain the most (or lose the most) from their investment in the company.
Institutional investors suffered the heaviest losses after the company’s market cap fell by £12m last week. However, the 6.5% one-year return for shareholders may have softened the blow. However, we would assume they would be on the lookout for weakness going forward.
Let’s take a closer look at what the different types of shareholders can tell us about Pharos Energy.
However, if you prefer to see where the There are opportunities and risks in the PHAR industryyou can view our analysis of the UK oil and gas industry.
What Does Institutional Ownership Tell Us About Pharos Energy?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. As such, they typically consider buying larger companies that are included in the relevant benchmark index.
We can see that Pharos Energy has institutional investors; and they hold a good portion of the company’s stock. This suggests some credibility among professional investors. But we can’t rely on that alone, as institutions sometimes make bad investments, just like everyone else. It’s not uncommon for the stock price to fall sharply when two large institutional investors attempt to sell a stock at the same time. So, it’s worth reviewing Pharos Energy’s earnings history so far (below). Of course, keep in mind that there are other factors to consider as well.
Institutional investors own over 50% of the company, so collectively they can likely heavily influence board decisions. We find that hedge funds have no meaningful investment in Pharos Energy. Looking at our data, we can see that the largest shareholder is Yorktown Partners LLC with 9.5% of the shares outstanding. In comparison, the second- and third-largest shareholders hold around 8.9% and 7.7% of the shares, respectively.
Upon closer inspection, we found that the top 7 shareholders own more than half of the company’s shares, suggesting that the interests of the larger shareholders are to some extent balanced by the smaller ones.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiment to know which way the wind is blowing. Quite a few analysts cover the stock, so you can easily look at the projected growth.
Insider ownership of Pharos Energy
While the precise definition of an insider can be subjective, almost everyone considers a board member to be an insider. Management runs the business, but the CEO is accountable to the board even if he or she is a member.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. In some cases, however, too much power is concentrated within this group.
Our information indicates that insiders hold a significant stake in Pharos Energy plc. It has a market cap of just £89m and insiders have £23m worth of shares in their own name. This could indicate that the founders still own a lot of shares. You can click here to see if they bought or sold.
General Public Property
The general public — including retail investors — own a 12% stake in the company, so it can’t be ignored. While this ownership may not be sufficient to sway a policy decision in their favor, they can still collectively influence company policy.
Private Equity Ownership
With a 9.5% stake, private equity firms could influence Pharos Energy’s board of directors. This might encourage some investors, as private equity is sometimes able to promote strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after listing it publicly.
It’s always worth thinking about the different groups that own shares in a company. But to better understand Pharos Energy, we need to consider many other factors. Case in point: We discovered it 2 warning signs for Pharos Energy You should be aware of this, and one of them makes us a little uneasy.
But ultimately it is the future, not the past that determines how well the owners of this business will do. Therefore, we think it’s wise to take a look at this free report that shows whether analysts are predicting a brighter future.
Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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