(NYSE: RNGR) has caught the attention of institutional investors who hold a sizable 47% stake

Key insights

• Significantly high institutional ownership implies that Ranger Energy Services’ share price is sensitive to its trading actions

• A total of 7 investors hold a majority stake in the company, with a 51% stake

• Insiders have been selling lately

A look at Ranger Energy Services, Inc. (NYSE:RNGR) shareholders can tell us which group is more powerful. We can see that institutions own the majority of the company, with a 47% stake. Put another way, the group faces maximum upside potential (or downside risk).

Because institutional owners have a huge pool of resources and liquidity, their investment decisions tend to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a big vote of confidence in its future.

In the chart below, we zoom in on the different ownership groups within Ranger Energy Services.

See our latest analysis for Ranger Energy Services

What does institutional ownership tell us about Ranger Energy Services?

Many institutions measure their performance against an index that approximates the local market. Therefore, they tend to pay more attention to companies that are included in the main indices.

We can see that Ranger Energy Services has institutional investors; and hold a large part of the company’s shares. This implies that the analysts working for these institutions have looked at the stock and like it. But just like anyone else, they can be wrong. It’s not uncommon to see a big drop in share price if two large institutional investors try to sell a stock at the same time. So it’s worth checking Ranger Energy Services’s past earnings trajectory, (below). Of course, remember that there are other factors to consider as well.

It appears that 7.0% of Ranger Energy Services shares are controlled by hedge funds. This is noteworthy as hedge funds are often very active investors who may try to influence management. Many want to see value creation (and a higher share price) in the short or medium term. CSL Capital Management, LP is currently the company’s largest shareholder, with 16% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 7.0% of the shares. Additionally, CEO Stuart Bodden holds 1.4% of the company’s shares.

We did more research and discovered that 7 of the main shareholders represent around 51% of the register, which implies that, along with the larger shareholders, there are some smaller shareholders, thus balancing each other’s interests somewhat.

The story continues

Researching institutional ownership is a good way to evaluate 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 over time.

Insider Ownership of Ranger Energy Services

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management runs the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership to be a positive factor because it can indicate that the board is well aligned with other shareholders. However, on some occasions, too much power is concentrated in this group.

Shareholders would probably be interested to know that insiders own shares in Ranger Energy Services, Inc.. In their own names, insiders own $8.6m worth of shares in the $269m company. This shows at least some alignment. You can click here to see if these insiders are buying or selling.

General Public Property

The general public – including retail investors – owns a 15% stake in the company and therefore cannot be easily ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private equity ownership

With a 16% stake, private equity firms are in a position to play a role in defining business strategy with a focus on value creation. Some might like this, because private equity is sometimes activists who hold management accountable. But other times, private equity is selling out, leading the company to go public.

Private company ownership

We can see that Private Companies own 12% of the issued shares. Maybe it’s worth going deeper into this. If related parties, such as insiders, have an interest in one of these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Ranger Energy Services, we need to consider many other factors. For example, we discovered 3 Warning Signs for Ranger Energy Services that you should be aware of before investing here.

But ultimately is the futureand not the past, which will determine the performance of the owners of this business. So we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

Note: The values ​​in this article are calculated based on data from the last twelve months, which refer to the 12-month period ending on the last date of the month in which the financial statements are dated. This may not be consistent with the figures in the full annual report.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St has no position in any of the stocks mentioned.