In This Article:
Key Insights
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Significantly high institutional ownership implies Lyft's stock price is sensitive to their trading actions
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50% of the business is held by the top 16 shareholders
If you want to know who really controls Lyft, Inc. (NASDAQ:LYFT), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 77% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 9.0% in value last week. Still, the 0.8% one-year gains may have helped mitigate their overall losses. They should, however, be mindful of further losses in the future.
Let's delve deeper into each type of owner of Lyft, beginning with the chart below.
See our latest analysis for Lyft
What Does The Institutional Ownership Tell Us About Lyft?
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.
Lyft 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. 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 Lyft, (below). Of course, keep in mind that there are other factors to consider, too.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in Lyft. The Vanguard Group, Inc. is currently the largest shareholder, with 8.4% of shares outstanding. With 7.4% and 4.7% of the shares outstanding respectively, FMR LLC and UBS Asset Management AG are the second and third largest shareholders. In addition, we found that John Risher, the CEO has 1.4% of the shares allocated to their name.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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.