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Legal & General Group Plc (LON:LGEN) is favoured by institutional owners who hold 83% of the company

In This Article:

Key Insights

  • Significantly high institutional ownership implies Legal & General Group's stock price is sensitive to their trading actions

  • 51% of the business is held by the top 22 shareholders

  • Insiders have bought recently

If you want to know who really controls Legal & General Group Plc (LON:LGEN), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 83% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's take a closer look to see what the different types of shareholders can tell us about Legal & General Group.

View our latest analysis for Legal & General Group

ownership-breakdown
LSE:LGEN Ownership Breakdown March 13th 2025

What Does The Institutional Ownership Tell Us About Legal & General Group?

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. We would expect most companies to have some institutions on the register, especially if they are growing.

Legal & General Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Legal & General Group's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
LSE:LGEN Earnings and Revenue Growth March 13th 2025

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Legal & General Group is not owned by hedge funds. BlackRock, Inc. is currently the company's largest shareholder with 8.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.1% and 4.9%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 22 have the combined ownership of 51% in the company, suggesting that no single shareholder has significant control over the company.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.