In This Article:
Key Insights
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The considerable ownership by sovereign wealth funds in Lucid Group indicates that they collectively have a greater say in management and business strategy
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59% of the company is held by a single shareholder (Public Investment Fund)
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Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Lucid Group, Inc. (NASDAQ:LCID) can tell us which group is most powerful. The group holding the most number of shares in the company, around 59% to be precise, is sovereign wealth funds. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, sovereign wealth funds as a group endured the highest losses last week after market cap fell by US$271m.
Let's delve deeper into each type of owner of Lucid Group, beginning with the chart below.
View our latest analysis for Lucid Group
What Does The Institutional Ownership Tell Us About Lucid Group?
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.
We can see that Lucid Group 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. 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 Lucid Group, (below). Of course, keep in mind that there are other factors to consider, too.
Lucid Group is not owned by hedge funds. Public Investment Fund is currently the company's largest shareholder with 59% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 2.8% and 1.4%, of the shares outstanding, respectively.
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Lucid 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.