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A look at the shareholders of Lumen Technologies, Inc. (NYSE: LUMN) can tell us which group is more powerful. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.
With a market capitalization of US $ 13 billion, Lumen Technologies is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Looking at our data on ownership groups (below), it appears that institutions own shares in the company. We can zoom in on the different property groups, to find out more about Lumen Technologies.
See our latest review for Lumen Technologies
What does institutional ownership tell us about Lumen Technologies?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
As you can see, institutional investors own a large stake in Lumen Technologies. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see Lumen Technologies’ historical earnings and revenue below, but keep in mind that there is always more to tell.
Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. Hedge funds don’t have a lot of shares in Lumen Technologies. The Vanguard Group, Inc. is currently the largest shareholder in the company with 11% of the shares outstanding. For context, the second largest shareholder owns around 8.8% of the outstanding shares, followed by an 8.7% stake by the third largest shareholder.
Looking at the register of shareholders, we can see that 51% of the property is controlled by the 13 major shareholders, which means that no shareholder has a controlling interest in the property.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider property of Lumen Technologies
The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management ultimately reports to the board of directors. However, it is not uncommon for managers to be board members, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders of Lumen Technologies, Inc. own less than 1% of the company. Being so important, we wouldn’t expect insiders to own a large chunk of the shares. Collectively, they own $ 100 million in stock. Arguably recent purchases and sales are just as important to consider. You can click here to see if any insiders have bought or sold.
General public property
With a 22% stake, the general public has some influence over Lumen Technologies. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Private shareholders
With an 8.8% stake, private equity firms could influence the board of directors of Lumen Technologies. Some might like this, as sometimes private capital is activists holding management accountable. But other times, the private equity sells, after you take the company public.
Next steps:
It’s always worth thinking about the different groups that own shares in a company. But to better understand Lumen Technologies, there are many other factors that we need to consider. To do this, you need to know the 1 warning sign we spotted with Lumen Technologies.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
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 day of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is 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 documents. Simply Wall St has no position in the mentioned stocks.
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