Yahoo Finance While individual investors own 26% of Lucid Group, Inc. (NASDAQ:LCID), sovereign wealth funds are its largest shareholders with 60% ownership
Key Insights
Lucid Group's significant sovereign wealth funds ownership suggests that the key decisions are influenced by shareholders from the larger public
Public Investment Fund owns 60% of the company
Every investor in Lucid Group, Inc. (NASDAQ:LCID) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are sovereign wealth funds with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 26% ownership in the company.
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.
We can see that Lucid Group 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. 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.
Lucid Group is not owned by hedge funds. The company's largest shareholder is Public Investment Fund, with ownership of 60%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. The Vanguard Group, Inc. is the second largest shareholder owning 3.6% of common stock, and BlackRock, Inc. holds about 1.8% of the company stock. In addition, we found that Peter Rawlinson, the CEO has 0.5% 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Lucid Group
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.
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.. The insiders have a meaningful stake worth US$164m. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 26% 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 Lucid Group better, we need to consider many other factors. For example, we've discovered 2 warning signs for Lucid Group that you should be aware of before investing here.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
