Every investor in Domain Holdings Australia Limited (ASX:DHG) should know the most powerful shareholder groups. And the group that holds the biggest slice of the pie is made up of 55%-owned state-owned companies. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
As a result, public companies collectively achieved the highest score last week, with the company hitting a market capitalization of A$2.0 billion after the stock gained 7.7%.
Let’s dive deeper into each type of Domain Holdings Australia owner, starting with the table below.
Check out our latest analysis for Domain Holdings Australia
What does institutional ownership tell us about Domain Holdings Australia?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
We can see that Domain Holdings Australia has institutional investors; and they own a good part of the shares of 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.
Domain Holdings Australia is not owned by hedge funds. Our data shows that Nine Entertainment Co. Holdings Limited is the largest shareholder with 55% of the shares outstanding. With such a stake in ownership, we infer that they have significant control over the future of the business. For context, the second shareholder owns approximately 6.6% of the outstanding shares, followed by a 2.1% stake by the third shareholder.
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
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our data suggests that insiders hold less than 1% of Domain Holdings Australia Limited in their own name. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case, insiders hold A$5.3 million worth of shares. It’s always good to see at least some insider ownership, but it might be worth checking to see if those insiders have sold.
General public property
With a 33% stake, the general public, consisting mostly of individual investors, has some influence over Domain Holdings Australia. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.
Ownership of a public company
Public companies currently own 55% of the shares of Domain Holdings Australia. It’s hard to say for sure, but it suggests they have intertwined business interests. This could be a strategic stake, so it’s worth monitoring this space for ownership changes.
It is always useful to think about the different groups that own shares in a company. But to better understand Domain Holdings Australia, we need to consider many other factors. Example: we have identified 1 warning sign for Domain Holdings Australia you should be aware.
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 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.