With a 67% stake, L E Lundbergföretagen AB (publ) (STO:LUND B) insiders have a lot riding on the company

Key Insights

• Significant insider control over L E Lundbergföretagen implies vested interests in company growth
• The top 2 shareholders own 54% of the company
• 11% of L E Lundbergföretagen is held by Institutions

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).

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

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

See our latest analysis for L E Lundbergföretagen

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

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 L E Lundbergföretagen. 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. 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 L E Lundbergföretagen's historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in L E Lundbergföretagen. 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.

After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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. 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.

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 information suggests that insiders own more than half of L E Lundbergföretagen AB (publ). This gives them effective control of the company. Insiders own kr95b worth of shares in the kr143b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

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.

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.

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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.