What does the ownership structure of Aston Martin Lagonda Global Holdings plc (LON:AML) look like?

Every investor in Aston Martin Lagonda Global Holdings plc (LON:AML) should know the most powerful shareholder groups. Big companies usually have institutions as shareholders, and we usually see insiders owning shares in small companies. I like to see at least a little insider ownership. As Charlie Munger said “Show me the incentive and I’ll show you the result”.

Aston Martin Lagonda Global Holdings isn’t huge, but it’s not particularly small either. It has a market capitalization of £1.1 billion, which means it generally expects to see certain institutions listed on the share register. In the graph below, we can see that the institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Aston Martin Lagonda Global Holdings.

Check out our latest analysis for Aston Martin Lagonda Global Holdings

LSE: AML Ownership Breakdown April 2, 2022

What does institutional ownership tell us about Aston Martin Lagonda Global Holdings?

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.

Aston Martin Lagonda Global Holdings already has institutions on the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Aston Martin Lagonda Global Holdings’ historical earnings and revenue below, but keep in mind there’s always more to tell.

earnings-and-revenue-growth
LSE: AML Earnings and Revenue Growth April 2, 2022

Hedge funds don’t have a lot of shares in Aston Martin Lagonda Global Holdings. From our data, we deduce that the largest shareholder is Lawrence Stroll (who also holds the title of Top Key Executive) with 17% of the shares outstanding. It’s generally considered a good sign when insiders hold a significant amount of stock in the company, and in that case, we’re happy to see a company insider act as a key stakeholder. Meanwhile, the second and third largest shareholders hold 12% and 10% of the outstanding shares respectively.

Upon further inspection, we found that more than half of the company’s shares are held by the top 8 shareholders, suggesting that the interests of the larger shareholders are to some extent balanced by those of the smaller ones.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider ownership of Aston Martin Lagonda Global Holdings

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Insiders appear to own a large share of Aston Martin Lagonda Global Holdings plc. It is very interesting to see that insiders have a significant £220m stake in this £1.1bn business. Good to see this level of investment. You can check here if these insiders have bought recently.

General public property

The general public, who are usually individual investors, hold a 20% stake in Aston Martin Lagonda Global Holdings. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Ownership of a public company

We understand that public companies own 12% of Aston Martin Lagonda Global Holdings. It’s hard to say for sure, but it suggests they have intertwined business interests. This could be a strategic stake, so it’s worth monitoring this space for ownership changes.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. To this end, you should be aware of the 1 warning sign we spotted with Aston Martin Lagonda Global Holdings.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.