In This Article:
Key Insights
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The considerable ownership by public companies in Lumine Group indicates that they collectively have a greater say in management and business strategy
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The largest shareholder of the company is Constellation Software Inc. with a 61% stake
To get a sense of who is truly in control of Lumine Group Inc. (CVE:LMN), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 61% to be precise, is public companies. 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, public companies as a group endured the highest losses last week after market cap fell by CA$644m.
Let's delve deeper into each type of owner of Lumine Group, beginning with the chart below.
View our latest analysis for Lumine Group
What Does The Institutional Ownership Tell Us About Lumine 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.
Lumine Group 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Lumine Group's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Lumine Group. Constellation Software Inc. is currently the largest shareholder, with 61% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 3.3% and 2.8% of the stock.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. 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 Lumine Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.