While institutions own 17% of Lithium Americas (Argentina) Corp. (TSE:LAAC), individual investors are its largest shareholders with 47% ownership
In This Article:
Key Insights
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Lithium Americas (Argentina)'s significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
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31% of the business is held by the top 25 shareholders
Every investor in Lithium Americas (Argentina) Corp. (TSE:LAAC) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Institutions, on the other hand, account for 17% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.
In the chart below, we zoom in on the different ownership groups of Lithium Americas (Argentina).
Check out our latest analysis for Lithium Americas (Argentina)
What Does The Institutional Ownership Tell Us About Lithium Americas (Argentina)?
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.
As you can see, institutional investors have a fair amount of stake in Lithium Americas (Argentina). This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Lithium Americas (Argentina), (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Lithium Americas (Argentina). Our data shows that General Motors Company is the largest shareholder with 9.3% of shares outstanding. Fifthdelta Ltd is the second largest shareholder owning 3.2% of common stock, and The Vanguard Group, Inc. holds about 2.2% of the company stock.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.