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Every investor in Bahamas Petroleum Company plc (LON:BPC) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.
Bahamas Petroleum is a smaller company with a market capitalization of UK£91m, so it may still be flying under the radar of many institutional investors. In the chart below, we can see that institutions are noticeable on the share registry. Let's take a closer look to see what the different types of shareholder can tell us about Bahamas Petroleum.
Check out our latest analysis for Bahamas Petroleum
What Does The Institutional Ownership Tell Us About Bahamas Petroleum?
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.
We can see that Bahamas Petroleum does have institutional investors; and they hold a good portion of the company's stock. 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 Bahamas Petroleum's historic earnings and revenue, below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Bahamas Petroleum. Looking at our data, we can see that the largest shareholder is Standard Life Aberdeen plc with 7.2% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.3% and 4.2%, of the shares outstanding, respectively.
Our studies suggest that the top 12 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Bahamas Petroleum
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.