Individual investors among major shareholders of Leafly Holdings, Inc. (NASDAQ:LFLY) and were hit after prices fell 17% last week
A look at the shareholders of Leafly Holdings, Inc. (NASDAQ: LFLY) can tell us which group is more powerful. With a 56% stake, individual investors hold the most shares in the company. In other words, the group faces the maximum upside potential (or downside risk).
While individual investors’ holdings took a hit after prices fell 17% last week, insiders with their 23% also suffered.
Let’s take a closer look at what different types of shareholders can tell us about Leafly Holdings.
Check out our latest analysis for Leafly Holdings
What does institutional ownership tell us about Leafly Holdings?
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.
As you can see, institutional investors own a sizable share of Leafly Holdings. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Leafly Holdings’ historical earnings and revenue below, but keep in mind there’s always more to tell.
We note that hedge funds have no significant investment in Leafly Holdings. The company’s largest shareholder is Brendan Kennedy, with a 9.9% stake. For context, the second shareholder owns approximately 7.7% of the outstanding shares, followed by a 7.1% ownership by the third shareholder. Michael Blue, who is the third shareholder, also holds the title of Chairman of the Board.
A closer look at our ownership data shows that the top 20 shareholders collectively own less than half of the register, suggesting a large group of small shareholders where no single shareholder has a majority.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.
Insider ownership of Leafly Holdings
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our information suggests insiders hold a significant stake in Leafly Holdings, Inc. Insiders hold $93 million worth of stock in the $402 million company. It’s great to see insiders so invested in the company. It might be worth checking to see if these insiders have bought recently.
General public property
The general public – including retail investors – owns 56% of Leafly Holdings. This size of ownership gives mainstream investors a certain collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed corporate acquisitions.
Private Company Ownership
Private companies appear to own 7.4% of Leafly Holdings shares. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with Leafly Holdings (at least 2 of which are of concern), and understanding them should be part of your investment process.
If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
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.
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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.