key insights
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The significant ownership interest in Arcadium Lithium by retail investors indicates that they collectively have a greater say in management and business strategy.
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The top 25 shareholders own 42% of the company
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Insiders have recently bought
Every investor in Arcadium Lithium plc (NYSE:ALTM) should be aware of the most powerful shareholder groups. The group with the biggest pie is individual investors, who own 57% of the stock. 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).
Institutional investors, who own 43%, came under pressure as the market capitalization fell to US$4.2 billion last week, while retail investors suffered the most losses.
Let's delve deeper into each type of Arcadium Lithium owner, starting from the table below.
Check out our latest analysis for Arcadium Lithium.
What does institutional ownership tell us about Arcadium Lithium?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own a fair amount of shares in Arcadium Lithium. 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 is therefore worth checking Arcadium Lithium's earnings history below. Of course, what really matters is the future.
Note that hedge funds don't have a meaningful investment in Arcadium Lithium. BlackRock, Inc. is currently his largest shareholder with 12% of the outstanding shares. The Vanguard Group, Inc. and Wellington Management Group LLP are the second and third largest shareholders, with 11% and 3.3% of the shares outstanding, respectively.
After reviewing our ownership data, we found that the 25 largest shareholders collectively own less than 50% of the share registry. This means that no single individual has a majority interest.
Researching institutional ownership is a good way to assess and filter a stock's expected performance. The same can be done by studying analyst sentiment. There are plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider ownership in Arcadium Lithium
The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, and at least captures board members. 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 be held accountable for board decisions.
Our latest data shows that insiders own less than 1% of Arcadium Lithium plc shares. Because the company is a large company, even small proportional profits can create alignment between the board and shareholders. In this case, insiders own US$8.2m worth of shares. Perhaps it's important to consider recent buys and sells as well. You can click here to see if insiders have been buying or selling.
Open to the public
The general public, mostly retail investors, collectively own 57% of Arcadium Lithium shares. With this level of ownership, individual investors can collectively play a role in decisions that affect shareholder returns, such as dividend policy and the appointment of directors. They also have the power to vote on acquisitions and mergers that may not improve profitability.
Next steps:
I think it would be very interesting to find out who owns the company. But to really gain insight, you need to consider other information as well.Case in point: we discovered 1 warning sign for Arcadium Lithium you should know.
But in the end it's the futureIt, not the past, determines how well the owner of this business will do. So we might consider this free report showing whether analysts are predicting a bright future.
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.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, 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.
