Autoliv, Inc. (NYSE:ALV) is largely controlled by institutional shareholders who own 77% of the company

In This Article:

Key Insights

  • Given the large stake in the stock by institutions, Autoliv's stock price might be vulnerable to their trading decisions

  • A total of 9 investors have a majority stake in the company with 51% ownership

  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

If you want to know who really controls Autoliv, Inc. (NYSE:ALV), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 77% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of Autoliv.

View our latest analysis for Autoliv

ownership-breakdown
NYSE:ALV Ownership Breakdown November 2nd 2024

What Does The Institutional Ownership Tell Us About Autoliv?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in Autoliv. 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 Autoliv's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:ALV Earnings and Revenue Growth November 2nd 2024

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. It would appear that 12% of Autoliv shares are controlled by hedge funds. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data shows that Alecta Pensionsf?rs?kring, ?msesidigt is the largest shareholder with 12% of shares outstanding. With 12% and 7.8% of the shares outstanding respectively, Cevian Capital AB and FMR LLC are the second and third largest shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.