Emeren Group Ltd's (NYSE:SOL) largest shareholders are retail investors with 54% ownership, hedge funds own 37%

In This Article:

Key Insights

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

  • A total of 25 investors have a majority stake in the company with 46% ownership

  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Emeren Group Ltd (NYSE:SOL) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And hedge funds on the other hand have a 37% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Emeren Group.

See our latest analysis for Emeren Group

ownership-breakdown
NYSE:SOL Ownership Breakdown November 15th 2024

What Does The Institutional Ownership Tell Us About Emeren Group?

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.

We can see that Emeren Group 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 Emeren Group's historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
NYSE:SOL Earnings and Revenue Growth November 15th 2024

It would appear that 37% of Emeren Group shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Looking at our data, we can see that the largest shareholder is Shah Capital Management, Inc with 37% of shares outstanding. For context, the second largest shareholder holds about 2.7% of the shares outstanding, followed by an ownership of 2.0% by the third-largest shareholder.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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