What does Lycopodium Limited (ASX: LYL) ownership structure look like?


The large shareholder groups of Lycopodium Limited (ASX: LYL) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares of small companies. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.

With a market cap of A $ 217 million, Lycopodium is a small cap stock, so it might not be well known to many institutional investors. Our analysis of company ownership, below, shows that institutional investors bought the company. We can zoom in on the different property groups, to find out more about Lycopodium.

See our latest review for Lycopodium

ASX: Distribution of LYL ownership May 24, 2021

What does institutional ownership tell us about Lycopodium?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. You would expect most businesses to have institutions listed, especially if they are growing.

We see that Lycopodium has institutional investors; and they own a good portion of the shares of the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone since institutions sometimes make bad investments, as everyone else does. If multiple institutions change their perspective on a stock at the same time, you could see the stock price drop quickly. So it’s worth looking at the Lycopodium earnings history below. Of course, it’s the future that really matters.

profit and revenue growth
ASX: LYL profit and revenue growth May 24, 2021

Hedge funds don’t have a lot of stake in Lycopodium. Michael Caratti is currently the largest shareholder of the company with 23% of the shares outstanding. With respectively 7.9% and 4.9% of the shares outstanding, Luala Pty Ltd and Celeste Funds Management Limited are the second and third largest shareholders. In addition, we found that Peter De Leo, the CEO, owns 2.4% of the shares allotted to his name.

A closer look at our ownership figures suggests that the top 11 shareholders hold a combined 51% stake, meaning that no single shareholder has a majority.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. While there is some analyst coverage, the company is probably not widely covered. So that might get more attention, on the track.

Lycopodium Insider Property

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately responds to the advice. However, it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.

Most consider insider ownership to be positive because it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our information suggests that insiders retain a significant stake in Lycopodium Limited. Insiders hold A $ 72 million of shares in the A $ 217 million company. It’s great to see insiders so invested in the business. It might be worth checking out if these insiders have bought recently.

General public property

The general public has a 45% stake in Lycopodium. While this group may not necessarily get it right, it can certainly have a real influence on the way the business is run.

Private company ownership

Our data indicates that private companies own 8.8% of the company’s shares. It is difficult to draw conclusions from this fact alone, so it is worth asking who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.

Next steps:

I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Take, for example, the ubiquitous spectrum of investment risk. We have identified 1 warning sign with Lycopodium, and understanding them should be part of your investment process.

If you’d rather find out what analysts are forecasting in terms of future growth, don’t miss this free analyst forecast report.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month in which the balance sheet is dated. This may not be consistent with figures in annual reports.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
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