Private companies are LVMH Moët Hennessy - Louis Vuitton, Société Européenne's (EPA:MC) biggest owners and were rewarded after market cap rose by €22b last week

Key Insights

• Significant control over LVMH Moët Hennessy - Louis Vuitton Société Européenne by private companies implies that the general public has more power to influence management and governance-related decisions
• The top 2 shareholders own 50% of the company
• 20% of LVMH Moët Hennessy - Louis Vuitton Société Européenne is held by Institutions

Every investor in LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) should be aware of the most powerful shareholder groups. We can see that private companies own the lion's share in the company with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies collectively scored the highest last week as the company hit €339b market cap following a 6.9% gain in the stock.

In the chart below, we zoom in on the different ownership groups of LVMH Moët Hennessy - Louis Vuitton Société Européenne.

Check out our latest analysis for LVMH Moët Hennessy - Louis Vuitton Société Européenne

What Does The Institutional Ownership Tell Us About LVMH Moët Hennessy - Louis Vuitton Société Européenne?

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.

LVMH Moët Hennessy - Louis Vuitton Société Européenne 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 LVMH Moët Hennessy - Louis Vuitton Société Européenne, (below). Of course, keep in mind that there are other factors to consider, too.

LVMH Moët Hennessy - Louis Vuitton Société Européenne is not owned by hedge funds. Financière Agache Société Anonyme is currently the largest shareholder, with 48% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.4% and 2.0%, of the shares outstanding, respectively.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 50% stake.

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.

Insider Ownership Of LVMH Moët Hennessy - Louis Vuitton Société Européenne

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our information suggests that LVMH Moët Hennessy - Louis Vuitton, Société Européenne insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own €1.5b 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 30% stake in LVMH Moët Hennessy - Louis Vuitton Société Européenne. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 49%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.