Lucero Energy Corp.'s (CVE:LOU) top owners are private equity firms with 37% stake, while 37% is held by individual investors

In This Article:

Key Insights

  • The considerable ownership by private equity firms in Lucero Energy indicates that they collectively have a greater say in management and business strategy

  • The top 2 shareholders own 56% of the company

  • Insiders own 24% of Lucero Energy

Every investor in Lucero Energy Corp. (CVE:LOU) should be aware of the most powerful shareholder groups. We can see that private equity firms own the lion's share in the company with 37% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 37% of the company’s shareholders.

Let's take a closer look to see what the different types of shareholders can tell us about Lucero Energy.

See our latest analysis for Lucero Energy

ownership-breakdown
ownership-breakdown

What Does The Lack Of Institutional Ownership Tell Us About Lucero Energy?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Lucero Energy, for yourself, below.

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

Lucero Energy is not owned by hedge funds. First Reserve Management, L.P. is currently the company's largest shareholder with 37% of shares outstanding. With 19% and 2.7% of the shares outstanding respectively, M. Chernoff and Kai Investment Trust are the second and third largest shareholders. In addition, we found that Brett Herman, the CEO has 2.1% of the shares allocated to their name.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 56% stake.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Lucero Energy

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.