Key Insights

• Significant insider control over Livermore Investments Group implies vested interests in company growth

• The largest shareholder of the company is Noam Lanir with a 74% stake

• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

Every investor in Livermore Investments Group Limited (LON:LIV) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are individual insiders with 90% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

So it follows, every decision made by insiders of Livermore Investments Group regarding the company’s future would be crucial to them.

Let’s delve deeper into each type of owner of Livermore Investments Group, beginning with the chart below.

See our latest analysis for Livermore Investments Group

What Does The Lack Of Institutional Ownership Tell Us About Livermore Investments Group?

Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.

There are multiple explanations for why institutions don’t own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Livermore Investments Group, for yourself, below.

Livermore Investments Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Noam Lanir with 74% of shares outstanding. This implies that they possess majority interests and have significant control over the company. Investors usually consider it a good sign when the company leadership has such a significant stake, as this is widely perceived to increase the chance that the management will act in the best interests of the company. In comparison, the second and third largest shareholders hold about 15% and 0.01% of the stock. Interestingly, the second and third-largest shareholders also happen to be the Chief Investment Officer and Chairman of the Board, respectively. This once again signifies considerable insider ownership amongst the company’s top 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. As far as we can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Story continues

Insider Ownership Of Livermore Investments Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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

It seems that insiders own more than half the Livermore Investments Group Limited stock. This gives them a lot of power. So they have a UK£70m stake in this UK£78m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

With a 10% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Livermore Investments Group. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Livermore Investments Group better, we need to consider many other factors. For example, we’ve discovered 1 warning sign for Livermore Investments Group that you should be aware of before investing here.

If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, backed by strong financial data.

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.