Every investor in Domain Holdings Australia Limited (ASX: DHG) should know about the most powerful shareholder groups. The group with the most shares in the company, around 59% to be precise, are state-owned companies. That is, the group is most likely to benefit the most if the stock rises (or to lose the most if there is a decline).
Clearly, state-owned companies profited the most from the company’s A $ 123 million rise in market capitalization last week.
Let’s take a more detailed look at each type of Domain Holdings Australia owner, starting with the table below.
Check out our latest review for Domain Holdings Australia
What does institutional ownership tell us about Domain Holdings Australia?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
Domain Holdings Australia already has institutions listed in the share register. Indeed, they hold a respectable stake in the company. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Domain Holdings Australia’s profit history below. Of course, the future is what really matters.
Hedge funds don’t have a lot of shares in Domain Holdings Australia. Nine Entertainment Co. Holdings Limited is currently the largest shareholder in the company with 59% of the shares outstanding. Essentially, this means that they have considerable influence, if not absolute control, over the future of the business. Meanwhile, the second and third largest shareholders hold 7.5% and 1.9% of the outstanding shares, respectively.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider Ownership of Domain Holdings Australia
The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board.
Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also confer immense power on a small group within the company. This can be negative in some circumstances.
Our information suggests that insiders of Domain Holdings Australia Limited own less than 1% of the company. It is a fairly large company, so it would be possible for the board members to have a significant interest in the company, without owning a large part of a proportional interest. In this case, they own around AU $ 5.4 million of shares (at current prices). It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
With a 27% stake, the general public, made up mainly of individual investors, has some influence over Domain Holdings Australia. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Public enterprise ownership
We see that public companies own 59% of the shares of Domain Holdings Australia at issue. It may be a strategic interest and the two companies may have related business interests. It could be that they defused. This exploitation probably deserves to be deepened.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well.
Many find it useful to take an in-depth look at how a business has performed in the past. You can access this detailed graphic past earnings, income and cash flow.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.