Sovereign wealth funds among Lucid Group, Inc.'s (NASDAQ:LCID) largest stockholders and were hit after last week's 9.7% price drop

Key Insights

• Significant control over Lucid Group by sovereign wealth funds implies that the general public has more power to influence management and governance-related decisions
• The largest shareholder of the company is The Public Investment Fund of The Kingdom of Saudi Arabia with a 61% stake
• Institutions own 12% of Lucid Group

Every investor in Lucid Group, Inc. (NASDAQ:LCID) should be aware of the most powerful shareholder groups. We can see that sovereign wealth funds own the lion's share in the company with 61% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And last week, sovereign wealth funds endured the biggest losses as the stock fell by 9.7%.

Let's take a closer look to see what the different types of shareholders can tell us about Lucid Group.

View our latest analysis for Lucid Group

What Does The Institutional Ownership Tell Us About Lucid Group?

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.

Lucid Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Lucid Group's historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Lucid Group. Looking at our data, we can see that the largest shareholder is The Public Investment Fund of The Kingdom of Saudi Arabia with 61% of shares outstanding. This implies that they have majority interest control of the future of the company. With 2.9% and 2.8% of the shares outstanding respectively, The Vanguard Group, Inc. and Michael Klein are the second and third largest shareholders. In addition, we found that Peter Rawlinson, the CEO has 0.6% of the shares allocated to their name.

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 Lucid Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

We can see that insiders own shares in Lucid Group, Inc.. It is a very large company, and board members collectively own US$586m worth of shares (at current prices). we sometimes take an interest in whether they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 23% 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:

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. For example, we've discovered 3 warning signs for Lucid Group that you should be aware of before investing here.

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.