Stock Analysis

With 67% ownership, L E Lundbergföretagen AB (publ) (STO:LUND B) insiders have a lot at stake

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Key Insights

Every investor in L E Lundbergföretagen AB (publ) (STO:LUND B) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 67% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

So, insiders of L E Lundbergföretagen have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's delve deeper into each type of owner of L E Lundbergföretagen, beginning with the chart below.

View our latest analysis for L E Lundbergföretagen

OM:LUND B Ownership Breakdown March 31st 2023

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.

We can see that L E Lundbergföretagen does have institutional investors; and they hold a good portion of the company's stock. 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. 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 L E Lundbergföretagen, (below). Of course, keep in mind that there are other factors to consider, too.

OM:LUND B Earnings and Revenue Growth March 31st 2023

L E Lundbergföretagen is not owned by hedge funds. With a 41% stake, CEO Fredrik Lundberg is the largest shareholder. The second and third largest shareholders are Katarina Martinson and Eva Louise Lindh, with an equal amount of shares to their name at 13%. 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.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of L E Lundbergföretagen

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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. Insiders own kr77b worth of shares in the kr116b company. That's extraordinary! 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

With a 22% ownership, the general public, mostly comprising of individual investors, have some degree of sway over 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:

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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for L E Lundbergföretagen (of which 1 is potentially serious!) you should know about.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.

Valuation is complex, but we're helping make it simple.

Find out whether L E Lundbergföretagen is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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