State or government account for 57% of Liechtensteinische Landesbank Aktiengesellschaft's (VTX:LLBN) ownership, while individual investors account for 37%

Key Insights

• The considerable ownership by state or government in Liechtensteinische Landesbank indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Liechtenstein with a 57% stake
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Liechtensteinische Landesbank Aktiengesellschaft (VTX:LLBN) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 57% to be precise, is state or government. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, individual investors make up 37% of the company’s shareholders.

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

See our latest analysis for Liechtensteinische Landesbank

What Does The Institutional Ownership Tell Us About Liechtensteinische Landesbank?

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.

Liechtensteinische Landesbank already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Liechtensteinische Landesbank, (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 Liechtensteinische Landesbank. The company's largest shareholder is Liechtenstein, with ownership of 57%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Dimensional Fund Advisors LP is the second largest shareholder owning 1.3% of common stock, and Credit Suisse Asset Management (Switzerland) Ltd. holds about 1.3% of the company stock.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Liechtensteinische Landesbank

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Liechtensteinische Landesbank Aktiengesellschaft. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CHF7.4m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 37% stake in Liechtensteinische Landesbank. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 1 warning sign we've spotted with Liechtensteinische Landesbank .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.