Key Insights

• Lucero Energy's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public

• 55% of the business is held by the top 2 shareholders

• Insiders own 24% of Lucero Energy

A look at the shareholders of Lucero Energy Corp. (CVE:LOU) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 36% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, private equity firms make up 36% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Lucero Energy.

See our latest analysis for Lucero Energy

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

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Lucero Energy might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

We note that hedge funds don't have a meaningful investment in Lucero Energy. Our data shows that First Reserve Management, L.P. is the largest shareholder with 36% of shares outstanding. M. Chernoff is the second largest shareholder owning 19% of common stock, and Kai Investment Trust holds about 2.6% of the company stock. In addition, we found that Brett Herman, the CEO has 2.0% 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 55% 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 some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Lucero Energy

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.