What you need to know about the composition of Legrand SA investors (EPA: LR)

If you want to know who actually controls Legrand SA (EPA: LR), then you will have to look at the composition of its share register. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. We also tend to see a decrease in insider ownership in companies that were previously owned by the state.

Legrand has a market capitalization of 24 billion euros, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s take a closer look at what the different types of shareholders can tell us about Legrand.

Discover our latest analysis for Legrand

ENXTPA: Distribution of LR property October 6, 2021

What does institutional ownership tell us about Legrand?

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 have a significant share of Legrand’s capital. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. It is therefore interesting to consult the history of Legrand’s results below. Of course, the future is what really matters.

profit and revenue growth
ENXTPA: LR Earnings and Revenue Growth October 6, 2021

Legrand is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is MFS Investment Management, Inc. with 10% of the shares outstanding. In comparison, the second and third shareholders hold around 4.5% and 4.2% of the capital.

Looking at our ownership data, we found that 25 of the major shareholders collectively own less than 50% of the share register, implying that no individual has a controlling stake.

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. 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 Legrand

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.

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.

We note that insiders hold Legrand SA shares. Insiders hold 426 million euros in shares (at current prices). Most would say this shows a good alignment of interests between shareholders and the board. Still, it might be worth checking out if these insiders have sold.

General public property

The general public, with a 50% stake in the company, will not be easily ignored. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand Legrand, there are many other factors to consider. To do this, you need to know the 1 warning sign we spotted with Legrand.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

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 any of the stocks mentioned.

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