Lesaka Technologies, Inc.'s (NASDAQ:LSAK) largest shareholders are private equity firms with 39% ownership, individual investors own 31%
Key Insights
Significant control over Lesaka Technologies by private equity firms implies that the general public has more power to influence management and governance-related decisions
The top 4 shareholders own 56% of the company
Every investor in Lesaka Technologies, Inc. (NASDAQ:LSAK) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 39% to be precise, is private equity firms. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, individual investors make up 31% of the company’s shareholders.
Let's delve deeper into each type of owner of Lesaka Technologies, beginning with the chart below.
See our latest analysis for Lesaka Technologies
What Does The Institutional Ownership Tell Us About Lesaka Technologies?
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.
As you can see, institutional investors have a fair amount of stake in Lesaka Technologies. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Lesaka Technologies' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Lesaka Technologies. Value Capital Partners is currently the largest shareholder, with 26% of shares outstanding. With 12% and 8.7% of the shares outstanding respectively, International Finance Corporation and Morgan Stanley, Investment Banking and Brokerage Investments are the second and third largest shareholders.
On looking further, we found that 56% of the shares are owned by the top 4 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Lesaka Technologies
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
We can report that insiders do own shares in Lesaka Technologies, Inc.. In their own names, insiders own US$11m worth of stock in the US$237m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Lesaka Technologies. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Private Equity Ownership
Private equity firms hold a 39% stake in Lesaka Technologies. This suggests they can be influential in key policy decisions. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Lesaka Technologies better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Lesaka Technologies 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.
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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.
