Individual investors are LanzaTech Global, Inc.'s (NASDAQ:LNZA) biggest owners and were rewarded after market cap rose by US$114m last week

Key Insights

• The considerable ownership by individual investors in LanzaTech Global indicates that they collectively have a greater say in management and business strategy
• The top 5 shareholders own 56% of the company
• Insiders own 18% of LanzaTech Global

If you want to know who really controls LanzaTech Global, Inc. (NASDAQ:LNZA), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 29% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, individual investors benefitted the most after the company's market cap rose by US$114m last week.

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

View our latest analysis for LanzaTech Global

What Does The Institutional Ownership Tell Us About LanzaTech Global?

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.

LanzaTech Global 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. 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 LanzaTech Global's earnings history below. Of course, the future is what really matters.

LanzaTech Global is not owned by hedge funds. Our data shows that Guardians of New Zealand Superannuation is the largest shareholder with 17% of shares outstanding. In comparison, the second and third largest shareholders hold about 15% and 8.7% of the stock. Additionally, the company's CEO Jennifer Holmgren directly holds 1.6% of the total shares outstanding.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of LanzaTech Global

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.

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 maintain a significant holding in LanzaTech Global, Inc.. It has a market capitalization of just US$921m, and insiders have US$164m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over LanzaTech Global. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With a stake of 24%, private equity firms could influence the LanzaTech Global board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for LanzaTech Global you should be aware of, and 1 of them is significant.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.