LanzaTech Global, Inc.'s (NASDAQ:LNZA) largest shareholders are retail investors who were rewarded as market cap surged US$55m last week
LanzaTech Global, Inc. LNZA | 18.44 | +25.96% |
Key Insights
- LanzaTech Global's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
- A total of 5 investors have a majority stake in the company with 55% ownership
- 18% of LanzaTech Global is held by insiders
A look at the shareholders of LanzaTech Global, Inc. (NASDAQ:LNZA) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 30% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, retail investors collectively scored the highest last week as the company hit US$621m market cap following a 9.4% gain in the stock.
Let's delve deeper into each type of owner of LanzaTech Global, beginning with the chart below.
Check out our latest analysis for LanzaTech Global
What Does The Institutional Ownership Tell Us About LanzaTech Global?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
We can see that LanzaTech Global does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 LanzaTech Global, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in LanzaTech Global. Guardians of New Zealand Superannuation is currently the company's largest shareholder with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 15% and 8.7%, of the shares outstanding, respectively. In addition, we found that Jennifer Holmgren, the CEO has 1.6% of the shares allocated to their name.
On looking further, we found that 55% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of LanzaTech Global
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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems insiders own a significant proportion of LanzaTech Global, Inc.. Insiders have a US$111m stake in this US$621m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over LanzaTech Global. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
With an ownership of 24%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for LanzaTech Global that you should be aware of before investing here.
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.
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.
