Lucara Diamond Corp. (TSE:LUC) stock most popular amongst individual investors who own 58%, while private companies hold 25%

In This Article:

Key Insights

  • The considerable ownership by individual investors in Lucara Diamond indicates that they collectively have a greater say in management and business strategy

  • 42% of the business is held by the top 20 shareholders

  • Institutional ownership in Lucara Diamond is 16%

Every investor in Lucara Diamond Corp. (TSE:LUC) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 58% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, private companies make up 25% of the company’s shareholders.

Let's delve deeper into each type of owner of Lucara Diamond, beginning with the chart below.

Check out our latest analysis for Lucara Diamond

ownership-breakdown
TSX:LUC Ownership Breakdown December 9th 2024

What Does The Institutional Ownership Tell Us About Lucara Diamond?

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.

We can see that Lucara Diamond does have institutional investors; and they hold a good portion of the company's stock. 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 Lucara Diamond's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSX:LUC Earnings and Revenue Growth December 9th 2024

We note that hedge funds don't have a meaningful investment in Lucara Diamond. Looking at our data, we can see that the largest shareholder is Nemesia S.À R.L. with 25% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 14% and 1.2%, of the shares outstanding, respectively.

Our studies suggest that the top 20 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.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Lucara Diamond

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.