What types of shareholders make up the Lectra SA share register (EPA: LSS)?
The large groups of shareholders of Lectra SA (EPA: LSS) have power over the company. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of small companies. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the motivation and I’ll show you the result.
Lectra has a market capitalization of € 986m, so some institutional investors are expected to have noticed the stock. Looking at our data on ownership groups (below), it looks like institutional investors bought the company. We can zoom in on the different property groups to find out more about Lectra.
See our latest analyzes for Lectra
What does institutional ownership tell us about Lectra?
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. You would expect most businesses to have institutions listed, especially if they are growing.
As you can see, institutional investors hold a significant stake in Lectra. This suggests some credibility among professional investors. But we cannot rely on this fact alone since institutions sometimes make bad investments, as everyone else does. If multiple institutions change their perspective on a stock at the same time, you could see the stock price drop quickly. It is therefore worth looking at Lectra’s history of results below. Of course, it’s the future that really matters.
Since institutional investors own more than half of the issued shares, the board will likely need to pay attention to their preferences. Our data shows that hedge funds own 10.0% of Lectra. This catches my attention as hedge funds sometimes try to influence management or make changes that will create short-term shareholder value. Looking at our data, we can see that the main shareholder is CEO Daniel Harari with 17% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 10.0% and 5.7%, respectively, of the outstanding shares.
We dug further and found that 7 of the major shareholders make up around 52% of the register, implying that with the larger shareholders there are a few smaller shareholders, thus balancing the interests of the others somewhat.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so it might be interesting to see what they are planning as well.
Lectra insider ownership
The definition of an insider may differ slightly from country to country, but board members still count. Company management responds to the board and the board must represent the interests of shareholders. Notably, sometimes the senior managers are themselves part of the board.
Most consider insider ownership to be positive because it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Lectra SA. It has a market capitalization of just 986 million euros and insiders hold 167 million euros of shares in their own name. It is quite important. Most would say it shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have bought or sold.
General public property
The general public, with a 16% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be sufficient to change company policy if the decision is not synchronized with other large shareholders.
It is always worth thinking about the different groups that own shares in a company. But to better understand Lectra, there are many other factors that we must take into account.
I always like to check income growth story. You can also, by accessing this free graph of historical earnings and earnings in this detailed graphic.
If you’d rather find out what analysts are forecasting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of the balance sheet date. This may not correspond to the figures in the annual reports.
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