Aston Martin Lagonda Global Holdings plc (LON:AML) surges 6.4%; private companies who own 25% shares profited along with institutions

Key Insights

• The considerable ownership by private companies in Aston Martin Lagonda Global Holdings indicates that they collectively have a greater say in management and business strategy
• A total of 4 investors have a majority stake in the company with 56% ownership
• 17% of Aston Martin Lagonda Global Holdings is held by insiders

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Every investor in Aston Martin Lagonda Global Holdings plc (LON:AML) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 25% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While private companies were the group that reaped the most benefits after last week’s 6.4% price gain, institutions also received a 23% cut.

Let's take a closer look to see what the different types of shareholders can tell us about Aston Martin Lagonda Global Holdings.

Check out our latest analysis for Aston Martin Lagonda Global Holdings

What Does The Institutional Ownership Tell Us About Aston Martin Lagonda Global Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

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.

Aston Martin Lagonda Global Holdings is not owned by hedge funds. Public Investment Fund is currently the company's largest shareholder with 17% of shares outstanding. With 16% and 13% of the shares outstanding respectively, Lawrence Stroll and Zhejiang Geely Holding Group Limited are the second and third largest shareholders. Lawrence Stroll, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.

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.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Aston Martin Lagonda Global Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 a reasonable proportion of Aston Martin Lagonda Global Holdings plc. Insiders own UK£108m worth of shares in the UK£649m company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 11% stake in the company, and hence can't easily be ignored. 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 25%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

We can see that public companies hold 7.5% of the Aston Martin Lagonda Global Holdings shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Aston Martin Lagonda Global Holdings , and understanding them should be part of your investment process.

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.