Key Insights Given the large stake in the stock by institutions, London Stock Exchange Group's stock price might be vulnerable to their trading decisions The top 21 shareholders own 51% of the company Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. A look at the shareholders of London Stock Exchange Group plc (LON:LSEG) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 75% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company. No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 6.2% in value last week. Still, the 20% one-year gains may have helped mitigate their overall losses. But they would probably be wary of future losses. Let's delve deeper into each type of owner of London Stock Exchange Group, beginning with the chart below. Check out our latest analysis for London Stock Exchange Group LSE:LSEG Ownership Breakdown April 9th 2025 What Does The Institutional Ownership Tell Us About London Stock Exchange Group? Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing. We can see that London Stock Exchange Group does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of London Stock Exchange Group, (below). Of course, keep in mind that there are other factors to consider, too.LSE:LSEG Earnings and Revenue Growth April 9th 2025 Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in London Stock Exchange Group. BlackRock, Inc. is currently the largest shareholder, with 8.1% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.0% and 4.5%, of the shares outstanding, respectively. Story Continues Looking at the shareholder registry, we can see that 51% of the ownership is controlled by the top 21 shareholders, meaning that no single shareholder has a majority interest in the ownership. 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. Insider Ownership Of London Stock Exchange Group The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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. Our most recent data indicates that insiders own less than 1% of London Stock Exchange Group plc. But they may have an indirect interest through a corporate structure that we haven't picked up on. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own UK£14m worth of shares. In this sort of situation, it can be more interesting to see if those insiders have been buying or selling. General Public Ownership The general public, who are usually individual investors, hold a 13% stake in London Stock Exchange Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. Private Equity Ownership With a stake of 6.0%, private equity firms could influence the London Stock Exchange Group board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public. Public Company Ownership We can see that public companies hold 4.0% of the London Stock Exchange Group shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further. Next Steps: While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - London Stock Exchange Group has 1 warning sign we think you should be aware of. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future . 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. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments
Institutional investors in London Stock Exchange Group plc (LON:LSEG) see UK£3.8b decrease in market cap last week, although long-term gains have benefitted them.
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