U.S. Markets closed
  • S&P 500

    4,076.60
    +58.83 (+1.46%)
     
  • Dow 30

    34,086.04
    +368.95 (+1.09%)
     
  • Nasdaq

    11,584.55
    +190.74 (+1.67%)
     
  • Russell 2000

    1,931.94
    +46.22 (+2.45%)
     
  • Crude Oil

    79.13
    +1.23 (+1.58%)
     
  • Gold

    1,943.90
    +4.70 (+0.24%)
     
  • Silver

    23.83
    +0.09 (+0.39%)
     
  • EUR/USD

    1.0870
    +0.0013 (+0.1196%)
     
  • 10-Yr Bond

    3.5290
    -0.0220 (-0.62%)
     
  • Vix

    19.40
    -0.54 (-2.71%)
     
  • GBP/USD

    1.2321
    -0.0033 (-0.2686%)
     
  • USD/JPY

    130.1000
    -0.2580 (-0.1979%)
     
  • BTC-USD

    22,952.21
    +164.77 (+0.72%)
     
  • CMC Crypto 200

    520.97
    +2.18 (+0.42%)
     
  • FTSE 100

    7,771.70
    -13.17 (-0.17%)
     
  • Nikkei 225

    27,327.11
    -106.29 (-0.39%)
     

The recent US$894m market cap decrease is likely to have disappointed insiders invested in Levi Strauss & Co. (NYSE:LEVI)

A look at the shareholders of Levi Strauss & Co. (NYSE:LEVI) can tell us which group is most powerful. With 56% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders as a group endured the highest losses after market cap fell by US$894m.

In the chart below, we zoom in on the different ownership groups of Levi Strauss.

Check out our latest analysis for Levi Strauss

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Levi Strauss?

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.

As you can see, institutional investors have a fair amount of stake in Levi Strauss. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Levi Strauss, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Levi Strauss is not owned by hedge funds. Our data shows that Miriam Haas is the largest shareholder with 11% of shares outstanding. Robert Haas is the second largest shareholder owning 9.3% of common stock, and Margaret Haas holds about 8.8% of the company stock. In addition, we found that Charles Bergh, the CEO has 0.9% of the shares allocated to their name.

On further inspection, we found that more than half the company's shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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

Insider Ownership Of Levi Strauss

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems that insiders own more than half the Levi Strauss & Co. stock. This gives them a lot of power. Insiders own US$3.2b worth of shares in the US$5.7b company. That's extraordinary! Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.

General Public Ownership

With a 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Levi Strauss. 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 Levi Strauss better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Levi Strauss (of which 1 is potentially serious!) you should know about.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here