In This Article:
Key Insights
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Insiders appear to have a vested interest in Lovisa Holdings' growth, as seen by their sizeable ownership
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The top 3 shareholders own 50% of the company
Every investor in Lovisa Holdings Limited (ASX:LOV) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 43% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Despite selling some shares recently, insiders control a good portion of the company's stock. As a result, the group bore the brunt of last week’s AU$380m market cap loss.
Let's take a closer look to see what the different types of shareholders can tell us about Lovisa Holdings.
View our latest analysis for Lovisa Holdings
What Does The Institutional Ownership Tell Us About Lovisa Holdings?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors have a fair amount of stake in Lovisa Holdings. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Lovisa Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Lovisa Holdings is not owned by hedge funds. Brett Blundy is currently the largest shareholder, with 39% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.1% and 5.3% of the stock. Furthermore, CEO Victor Herrero Amigo is the owner of 2.8% of the company's shares.
To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Lovisa Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.