While individual investors own 29% of Luzerner Kantonalbank AG (VTX:LUKN), state or government are its largest shareholders with 53% ownership
Key Insights
Significant control over Luzerner Kantonalbank by state or government implies that the general public has more power to influence management and governance-related decisions
53% of the company is held by a single shareholder (Kanton Luzern)
Institutions own 18% of Luzerner Kantonalbank
A look at the shareholders of Luzerner Kantonalbank AG (VTX:LUKN) can tell us which group is most powerful. With 53% stake, state or government possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual investors make up 29% of the company’s shareholders.
Let's delve deeper into each type of owner of Luzerner Kantonalbank, beginning with the chart below.
View our latest analysis for Luzerner Kantonalbank
What Does The Institutional Ownership Tell Us About Luzerner Kantonalbank?
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.
We can see that Luzerner Kantonalbank does have institutional investors; and they hold a good portion of the company's stock. 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 Luzerner Kantonalbank, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Luzerner Kantonalbank. The company's largest shareholder is Kanton Luzern, with ownership of 53%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 14% and 1.0% of the shares outstanding respectively, ZKB Asset Management and Dimensional Fund Advisors LP are the second and third largest shareholders.
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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Luzerner Kantonalbank
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We note our data does not show any board members holding shares, personally. Not all jurisdictions have the same rules around disclosing insider ownership, and it is possible we have missed something, here. So you can click here learn more about the CEO.
General Public Ownership
With a 29% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Luzerner Kantonalbank. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Luzerner Kantonalbank better, we need to consider many other factors. For instance, we've identified 1 warning sign for Luzerner Kantonalbank that you should be aware of.
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.
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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.
