L E Lundbergföretagen AB (publ) (STO:LUND B) insiders have significant skin in the game with 67% ownership

Key Insights

• Insiders appear to have a vested interest in L E Lundbergföretagen's growth, as seen by their sizeable ownership
• The top 2 shareholders own 54% of the company
• Institutional ownership in L E Lundbergföretagen is 11%

A look at the shareholders of L E Lundbergföretagen AB (publ) (STO:LUND B) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 67% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

With such a notable stake in the company, insiders would be highly incentivised to make value accretive decisions.

In the chart below, we zoom in on the different ownership groups of L E Lundbergföretagen.

Check out our latest analysis for L E Lundbergföretagen

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.

L E Lundbergföretagen already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 L E Lundbergföretagen's earnings history below. Of course, the future is what really matters.

L E Lundbergföretagen is not owned by hedge funds. The company's CEO Fredrik Lundberg is the largest shareholder with 41% of shares outstanding. The second and third largest shareholders are Eva Louise Lindh and Katarina Martinson, with an equal amount of shares to their name at 13%. Interestingly, the third-largest shareholder, Katarina Martinson is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

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 54% stake.

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

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 information suggests that insiders own more than half of L E Lundbergföretagen AB (publ). This gives them effective control of the company. Insiders own kr94b worth of shares in the kr141b company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with L E Lundbergföretagen , and understanding them should be part of your investment process.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.