What Type Of Shareholders Own The Most Number of LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) Shares?

The big shareholder groups in LVMH Moët Hennessy - Louis Vuitton, Société Européenne (EPA:MC) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

LVMH Moët Hennessy - Louis Vuitton Société Européenne has a market capitalization of €205b, so it's too big to fly under the radar. We'd expect to see both institutions and retail investors owning a portion of the company. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about 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?

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 LVMH Moët Hennessy - Louis Vuitton Société Européenne. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see LVMH Moët Hennessy - Louis Vuitton Société Européenne's historic earnings and revenue below, but keep in mind there's always more to the story.

LVMH Moët Hennessy - Louis Vuitton Société Européenne is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Financière Agache Société Anonyme with 43% of shares outstanding. With 3.1% and 2.0% of the shares outstanding respectively, Capital Research and Management Company and Groupe Arnault SAS are the second and third largest shareholders.

On looking further, we found that 50% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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.

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 most recent data indicates that insiders own less than 1% of LVMH Moët Hennessy - Louis Vuitton, Société Européenne. However, it's possible that insiders might have an indirect interest through a more complex 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 €961m worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public holds a 30% stake in LVMH Moët Hennessy - Louis Vuitton Société Européenne. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

Our data indicates that Private Companies hold 46%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand LVMH Moët Hennessy - Louis Vuitton Société Européenne better, we need to consider many other factors. For example, we've discovered 1 warning sign for LVMH Moët Hennessy - Louis Vuitton Société Européenne that you should be aware of before investing here.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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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