Private companies who have a significant stake must be disappointed along with institutions after Aston Martin Lagonda Global Holdings plc's (LON:AML) market cap dropped by UK£410m
Significant control over Aston Martin Lagonda Global Holdings by private companies implies that the general public has more power to influence management and governance-related decisions
54% of the business is held by the top 4 shareholders
A look at the shareholders of Aston Martin Lagonda Global Holdings plc (LON:AML) can tell us which group is most powerful. We can see that private companies own the lion's share in the company with 25% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While institutions who own 24% came under pressure after market cap dropped to UK£906m last week,private companies took the most losses.
Let's take a closer look to see what the different types of shareholders can tell us about Aston Martin Lagonda Global Holdings.
What Does The Institutional Ownership Tell Us About Aston Martin Lagonda Global Holdings?
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.
As you can see, institutional investors have a fair amount of stake in Aston Martin Lagonda Global Holdings. 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. 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 Aston Martin Lagonda Global Holdings' earnings history below. Of course, the future is what really matters.
LSE:AML Earnings and Revenue Growth October 6th 2024
Hedge funds don't have many shares in Aston Martin Lagonda Global Holdings. The company's largest shareholder is Public Investment Fund, with ownership of 20%. Zhejiang Geely Holding Group Co., Ltd. is the second largest shareholder owning 15% of common stock, and Lawrence Stroll holds about 9.8% of the company stock. Lawrence Stroll, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
To make our study more interesting, we found that the top 4 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Aston Martin Lagonda Global Holdings
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in Aston Martin Lagonda Global Holdings plc. This is a big company, so it is good to see this level of alignment. Insiders own UK£90m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.
General Public Ownership
With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Aston Martin Lagonda Global Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
We can see that Private Companies own 25%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Public Company Ownership
We can see that public companies hold 8.9% of the Aston Martin Lagonda Global Holdings shares on issue. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Aston Martin Lagonda Global Holdings better, we need to consider many other factors. For instance, we've identified 3 warning signs for Aston Martin Lagonda Global Holdings that you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
