Key Insights

• Given the large stake in the stock by institutions, Energean's stock price might be vulnerable to their trading decisions

• A total of 11 investors have a majority stake in the company with 51% ownership

• Insiders have bought recently

Every investor in Energean plc (LON:ENOG) should be aware of the most powerful shareholder groups. With 68% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, institutional investors ended up benefitting the most after the company hit UK￡1.8b in market cap. The one-year return on investment is currently 26% and last week's gain would have been more than welcomed.

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

Check out our latest analysis for Energean

What Does The Institutional Ownership Tell Us About Energean?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Energean. 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. 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 Energean's earnings history below. Of course, the future is what really matters.

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Energean is not owned by hedge funds. The company's CEO Mathaios Rigas is the largest shareholder with 8.4% of shares outstanding. The second and third largest shareholders are Shlomo Eliahu Holding Ltd, Asset Management Arm and Clal Financial Management Ltd, with an equal amount of shares to their name at 7.4%.

A closer look at our ownership figures suggests that the top 11 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.