If you want to know who really controls Domain Holdings Australia Limited (ASX:DHG), then you’ll need to look at the composition of its share register. With 55% of the capital, public companies hold the maximum shares in the company. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
As the market capitalization fell to A$2.0 billion last week, public companies would have suffered the highest losses than any other group of shareholders in the company.
Let’s dive deeper into each type of Domain Holdings Australia owner, starting with the table below.
See our latest analysis for Domain Holdings Australia
What does institutional ownership tell us about Domain Holdings Australia?
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.
Domain Holdings Australia already has institutions on the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking out the past earnings trajectory of Domain Holdings Australia (below). Of course, keep in mind that there are other factors to consider as well.
We note that hedge funds have no significant investment in Domain Holdings Australia. Nine Entertainment Co. Holdings Limited is currently the largest shareholder, with 55% of the outstanding shares. With such a stake in ownership, we infer that they have significant control over the future of the business. Meanwhile, the second and third largest shareholders hold 7.0% and 1.8% of the outstanding shares respectively.
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. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Insider ownership of Domain Holdings Australia
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 that insiders of Domain Holdings Australia Limited own less than 1% of the company. This is a fairly large company, so it would be possible for board members to hold a significant stake in the company, without holding much proportional interest. In this case, they hold approximately A$3.4 million worth of shares (at current prices). Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.
General public property
The general public, who are usually individual investors, hold a 32% stake in Domain Holdings Australia. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Ownership of a public company
We can see that public companies own 55% of the shares of Domain Holdings Australia on issuance. It may be a strategic interest and both companies may have related business interests. They may have separated. This exploitation probably deserves further investigation.
While it is worth considering the different groups that own a business, there are other, even more important factors. To this end, you should be aware of the 2 warning signs we spotted with Domain Holdings Australia.
But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.