What types of shareholders hold the majority of shares in Learning Technologies Group plc (LON: LTG)?

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Every investor in Learning Technologies Group plc (LON: LTG) should know about the most powerful shareholder groups. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. I like to see at least a little insider ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

With a market cap of £ 1.8 billion, Learning Technologies Group is a decent size, so it’s probably on the radar of institutional investors. In the graph below, we can see that the institutions hold shares in the company. Let’s dig deeper into each type of owner to find out more about Learning Technologies Group.

Check out our latest analysis for Learning Technologies Group

distribution of ownership

What does institutional ownership tell us about Learning Technologies Group?

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.

Learning Technologies Group already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has a certain degree of credibility in the investment community. However, it is better to be careful not to rely on the so-called validation that accompanies institutional investors. They too are sometimes wrong. 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 without a history of growth. You can see the historical revenue and revenue for Learning Technologies Group below, but keep in mind that there is always more to tell.

profit and revenue growth

profit and revenue growth

Investors should note that institutions actually own more than half of the business, so they can collectively wield significant power. We note that the hedge funds do not have a significant investment in Learning Technologies Group. Our data shows Andrew Brode is the largest shareholder with 15% of the shares outstanding. For context, the second largest shareholder owns around 12% of the outstanding shares, followed by a 9.3% stake by the third largest shareholder. Jonathan Satchell, who is the third shareholder, also holds the title of member of the board of directors.

Upon closer inspection, we found that more than half of the company’s stock is owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are to some extent offset by the smaller ones.

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 the Learning Technologies group

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 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.

Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Learning Technologies Group plc. It has a market cap of just £ 1.8bn and insiders have £ 464m of shares in their own name. It is quite important. Most would be happy to see the board invest alongside them. You may want to access this free chart showing recent insider trades.

General public property

With a 12% stake, the general public has some influence over Learning Technologies Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we have identified 1 warning sign for Learning Technologies Group that you should be aware of.

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 date 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.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.

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