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The market capitalization of Lucid Group, Inc. (NASDAQ:LCID) fell by $2.1 billion last week; Sovereign funds have paid the price

Every Lucid Group, Inc. (NASDAQ: LCID) investor should know the most powerful shareholder groups. With 60% of the capital, sovereign wealth funds hold the maximum share in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.

And after the 11% drop in the share price last week, sovereign wealth funds suffered the most losses.

Let’s take a closer look at what different types of shareholders can tell us about Lucid Group.

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distribution of property
NasdaqGS: LCID Ownership Breakdown November 28, 2022

What does institutional ownership tell us about Lucid Group?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that Lucid Group has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Lucid Group’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

NasdaqGS: LCID Earnings and Revenue Growth November 28, 2022

Hedge funds don’t have a lot of shares in Lucid Group. Looking at our data, we can see that the largest shareholder is the Kingdom of Saudi Arabia Public Investment Fund with 60% of the outstanding shares. This implies that they have majority control over the future of the company. The second and third largest shareholders are Michael Klein and The Vanguard Group, Inc., with an equal number of shares to their names at 3.1%. Additionally, the company’s CEO, Peter Rawlinson, directly owns 0.5% of the total shares outstanding.

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 a stock’s expected performance. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Lucid Group Insider Ownership

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Shareholders would likely be interested to learn that insiders hold shares of Lucid Group, Inc. Insiders have a significant stake worth $700 million. sometimes we are interested in whether they bought or sold.

General public property

With a 25% stake, the general public, consisting mainly of individual investors, has some influence over Lucid Group. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Lucid Group, we need to consider many other factors. Know that Lucid Group shows 2 warning signs in our investment analysis you should know…

If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

Valuation is complex, but we help make it simple.

Find out if Lucid Group is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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