In This Article:
Key Insights
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Significant control over Lilium by individual investors implies that the general public has more power to influence management and governance-related decisions
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40% of the business is held by the top 25 shareholders
If you want to know who really controls Lilium N.V. (NASDAQ:LILM), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 59% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Public companies, on the other hand, account for 18% of the company's stockholders.
Let's delve deeper into each type of owner of Lilium, beginning with the chart below.
View our latest analysis for Lilium
What Does The Institutional Ownership Tell Us About Lilium?
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.
We can see that Lilium does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Lilium, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Lilium. Tencent Holdings Limited is currently the company's largest shareholder with 18% of shares outstanding. For context, the second largest shareholder holds about 6.5% of the shares outstanding, followed by an ownership of 5.8% by the third-largest shareholder.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Lilium
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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.