The considerable ownership by individual investors in LanzaTech Global indicates that they collectively have a greater say in management and business strategy
A total of 5 investors have a majority stake in the company with 52% ownership
A look at the shareholders of LanzaTech Global, Inc. (NASDAQ:LNZA) can tell us which group is most powerful. We can see that individual investors own the lion's share in the company with 32% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While insiders who own 18% came under pressure after market cap dropped to US$186m last week,individual investors took the most losses.
Let's delve deeper into each type of owner of LanzaTech Global, beginning with the chart below.
NasdaqCM:LNZA Ownership Breakdown February 2nd 2025
What Does The Institutional Ownership Tell Us About LanzaTech Global?
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 LanzaTech Global. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 LanzaTech Global, (below). Of course, keep in mind that there are other factors to consider, too.
NasdaqCM:LNZA Earnings and Revenue Growth February 2nd 2025
LanzaTech Global is not owned by hedge funds. Guardians of New Zealand Superannuation is currently the company's largest shareholder with 17% of shares outstanding. Vinod Khosla is the second largest shareholder owning 15% of common stock, and Sinopec Capital Co., Ltd. holds about 8.7% of the company stock. Furthermore, CEO Jennifer Holmgren is the owner of 1.6% of the company's shares.
Our research also brought to light the fact that roughly 52% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 LanzaTech Global
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders maintain a significant holding in LanzaTech Global, Inc.. Insiders own US$34m worth of shares in the US$186m company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 32% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
With an ownership of 17%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand LanzaTech Global better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with LanzaTech Global (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using 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 account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
