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
In This Article:
Key Insights
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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
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54% of the business is held by the top 4 shareholders
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Institutional ownership in Aston Martin Lagonda Global Holdings is 24%
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.
See our latest analysis for 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.
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.