With 46% stake, Lifetime Brands, Inc. (NASDAQ:LCUT) seems to have captured institutional investors' interest
In This Article:
Key Insights
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Institutions' substantial holdings in Lifetime Brands implies that they have significant influence over the company's share price
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A total of 7 investors have a majority stake in the company with 51% ownership
If you want to know who really controls Lifetime Brands, Inc. (NASDAQ:LCUT), 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 46% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of Lifetime Brands.
View our latest analysis for Lifetime Brands
What Does The Institutional Ownership Tell Us About Lifetime Brands?
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.
Lifetime Brands 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 Lifetime Brands, (below). Of course, keep in mind that there are other factors to consider, too.
Lifetime Brands is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Taylor Parent, LLC with 25% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.5% and 5.2% of the stock. Jeffrey Siegel, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board. Additionally, the company's CEO Robert Kay directly holds 2.8% of the total shares outstanding.
We did some more digging and found that 7 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.