Here's What L E Lundbergföretagen AB (publ)'s (STO:LUND B) Shareholder Ownership Structure Looks Like

By
Simply Wall St
Published
February 22, 2022
OM:LUND B
Source: Shutterstock

A look at the shareholders of L E Lundbergföretagen AB (publ) (STO:LUND B) can tell us which group is most powerful. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

With a market capitalization of kr111b, L E Lundbergföretagen is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about L E Lundbergföretagen.

See our latest analysis for L E Lundbergföretagen

ownership-breakdown
OM:LUND B Ownership Breakdown February 22nd 2022

What Does The Institutional Ownership Tell Us About L E Lundbergföretagen?

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.

As you can see, institutional investors have a fair amount of stake in L E Lundbergföretagen. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 L E Lundbergföretagen's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
OM:LUND B Earnings and Revenue Growth February 22nd 2022

We note that hedge funds don't have a meaningful investment in L E Lundbergföretagen. Looking at our data, we can see that the largest shareholder is the CEO Fredrik Lundberg with 41% of shares outstanding. The second and third largest shareholders are Katarina Martinson and Eva Louise Lindh, with an equal amount of shares to their name at 15%. Interestingly, the third-largest shareholder, Eva Louise Lindh is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of L E Lundbergföretagen

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of L E Lundbergföretagen AB (publ). This means they can collectively make decisions for the company. Given it has a market cap of kr111b, that means insiders have a whopping kr78b worth of shares in their own names. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 18% stake in L E Lundbergföretagen. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand L E Lundbergföretagen better, we need to consider many other factors. Be aware that L E Lundbergföretagen is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.