key insights
-
Large institutional holdings in the lifestyle community mean they have significant influence on a company's stock price
-
Top 7 shareholders own 51% of the company
-
Insiders have recently bought
To understand who actually controls Lifestyle Communities Limited (ASX:LIC), it's important to understand the ownership structure of the business. Institutional investors hold the largest stake in the company, holding his 37% of the shares. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
Because institutional investors have access to large amounts of capital, their market trends tend to be closely monitored by retail and retail investors. As a result, large amounts of institutional funds invested in a company are generally considered a positive attribute.
Let's take a closer look at each type of lifestyle community owner, starting with the diagram below.
Check out our latest analysis for Lifestyle Community.
What does property ownership tell us about a lifestyle community?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
We see that the Lifestyle community has institutional investors. And they own a significant portion of the company's stock. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. If multiple financial institutions change their view on a stock at the same time, you could see the stock price drop fast. It's therefore worth checking the earnings history of Lifestyle Community below. Of course, what really matters is the future.
It appears that 16% of Lifestyle Communities' shares are controlled by hedge funds. This is noteworthy because hedge funds are often very active investors and may try to influence management. Many people want value creation (and stock price appreciation) in the short or medium term. Brahman Capital Management Pte. Ltd. is currently the largest shareholder with 16% of the shares outstanding. Australian Super Pty Ltd is the second largest shareholder owning 11% of the common stock, while James Kelly owns approximately 6.1% of the company's stock. James Kelly, the third largest shareholder, also holds the title of board member.
On further investigation, we found that 7 of the top shareholders account for around 51% of the registry. This means that in addition to large shareholders, there are a few small shareholders, who balance each other's interests.
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 this stock, so you can find out its expected growth quite easily.
Insider ownership of lifestyle communities.
The precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.
Shareholders would probably be interested to know that insiders own shares in Lifestyle Communities Limited. This is a big company, so it's good to see this level of collaboration. Insiders say he owns AU$112m worth of shares (at current prices). It's good to see this level of investment by insiders. Here you can see if insiders have been buying recently.
Open to the public
The general public, usually retail investors, own 36% of Lifestyle Communities' shares. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Private company ownership
We can see that Private companies own 5.3% of the shares outstanding. Private companies may qualify as related parties. Insiders may have an interest in a public company through ownership in a private company rather than in their individual capacity. Although it is difficult to draw broad conclusions, it is worth noting as an area with room for further research.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, consider the ever-present fear of investment risk. We've identified 3 warning signs for you We work with lifestyle communities (at least two of which are a bit unpleasant), and understanding them should be part of your investment process.
If you want to know what analysts are predicting in terms of future growth, don't miss this free Report on analyst forecasts.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
