In This Article:
Key Insights
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The considerable ownership by individual investors in Lonza Group indicates that they collectively have a greater say in management and business strategy
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The top 25 shareholders own 32% of the company
To get a sense of who is truly in control of Lonza Group AG (VTX:LONN), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, institutions make up 44% of the company’s shareholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
In the chart below, we zoom in on the different ownership groups of Lonza Group.
Check out our latest analysis for Lonza Group
What Does The Institutional Ownership Tell Us About Lonza Group?
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.
Lonza Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Lonza Group's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Lonza Group. BlackRock, Inc. is currently the largest shareholder, with 8.7% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.8% and 3.1% of the stock.
A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Lonza Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.