June 13, 2024
Investors

Laiqon AG (ETR:LQAG) stock most popular amongst individual investors who own 56%, while private equity firms hold 19%


Key Insights

  • Significant control over Laiqon by individual investors implies that the general public has more power to influence management and governance-related decisions

  • 44% of the business is held by the top 10 shareholders

  • 17% of Laiqon is held by Institutions

If you want to know who really controls Laiqon AG (ETR:LQAG), 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 56% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And private equity firms on the other hand have a 19% ownership in the company.

Let’s delve deeper into each type of owner of Laiqon, beginning with the chart below.

View our latest analysis for Laiqon

ownership-breakdown

ownership-breakdown

What Does The Institutional Ownership Tell Us About Laiqon?

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 Laiqon does have institutional investors; and they hold a good portion of the company’s stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Laiqon, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth

earnings-and-revenue-growth

Hedge funds don’t have many shares in Laiqon. The company’s largest shareholder is Deutsche Effecten- und Wechsel-Beteiligungsgesellschaft AG, with ownership of 19%. The second and third largest shareholders are Achim Plate and Lange Assets & Consulting GmbH, with an equal amount of shares to their name at 8.0%. Achim Plate, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

On studying our ownership data, we found that 10 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Laiqon

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

We can see that insiders own shares in Laiqon AG. As individuals, the insiders collectively own €8.9m worth of the €112m company. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public — including retail investors — own 56% of Laiqon. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Equity Ownership

With an ownership of 19%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and — as the name suggests — don’t invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

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 1 warning sign for Laiqon 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.



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