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Lee Enterprises, Incorporated's (NASDAQ:LEE) market cap touched US$102m last week, benefiting both retail investors who own 26% as well as institutions
Significant control over Lee Enterprises by retail investors implies that the general public has more power to influence management and governance-related decisions
Every investor in Lee Enterprises, Incorporated (NASDAQ:LEE) should be aware of the most powerful shareholder groups. With 26% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
Retail investors gained the most after market cap touched US$102m last week, while institutions who own 25% also benefitted.
Let's delve deeper into each type of owner of Lee Enterprises, beginning with the chart below.
NasdaqGS:LEE Ownership Breakdown October 23rd 2024
What Does The Institutional Ownership Tell Us About Lee Enterprises?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Lee Enterprises already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Lee Enterprises' earnings history below. Of course, the future is what really matters.
NasdaqGS:LEE Earnings and Revenue Growth October 23rd 2024
Our data indicates that hedge funds own 14% of Lee Enterprises. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Quint Digital Limited is currently the largest shareholder, with 12% of shares outstanding. With 8.0% and 7.8% of the shares outstanding respectively, GAMCO Investors, Inc. and Solas Capital Management, LLC are the second and third largest shareholders. Additionally, the company's CEO Kevin Mowbray directly holds 2.2% of the total shares outstanding.
We did some more digging and found that 8 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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 is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Lee Enterprises
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 Lee Enterprises, Incorporated. Insiders have a US$18m stake in this US$102m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.
General Public Ownership
With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Lee Enterprises. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Company Ownership
It seems that Private Companies own 5.2%, of the Lee Enterprises stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Public Company Ownership
We can see that public companies hold 12% of the Lee Enterprises shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Lee Enterprises better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Lee Enterprises you should be aware of, and 2 of them shouldn't be ignored.
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.
