Lifecore Biomedical, Inc.'s (NASDAQ:LFCR) top owners are retail investors with 35% stake, while 35% is held by hedge funds
In This Article:
Key Insights
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Significant control over Lifecore Biomedical by retail investors implies that the general public has more power to influence management and governance-related decisions
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A total of 8 investors have a majority stake in the company with 51% ownership
To get a sense of who is truly in control of Lifecore Biomedical, Inc. (NASDAQ:LFCR), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 35% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, hedge funds make up 35% of the company’s shareholders.
Let's delve deeper into each type of owner of Lifecore Biomedical, beginning with the chart below.
View our latest analysis for Lifecore Biomedical
What Does The Institutional Ownership Tell Us About Lifecore Biomedical?
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 Lifecore Biomedical 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 Lifecore Biomedical, (below). Of course, keep in mind that there are other factors to consider, too.
Our data indicates that hedge funds own 35% of Lifecore Biomedical. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near term value for shareholders. Our data shows that Wynnefield Capital, Inc. is the largest shareholder with 13% of shares outstanding. Legion Partners Asset Management, LLC is the second largest shareholder owning 12% of common stock, and Greenhaven Road Investment Management, LP holds about 10% of the company stock.
On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.