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With 57% ownership of the shares, Endava plc (NYSE:DAVA) is heavily dominated by institutional owners

In This Article:

Key Insights

  • Given the large stake in the stock by institutions, Endava's stock price might be vulnerable to their trading decisions

  • The top 12 shareholders own 50% of the company

  • 27% of Endava is held by insiders

If you want to know who really controls Endava plc (NYSE:DAVA), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

In the chart below, we zoom in on the different ownership groups of Endava.

See our latest analysis for Endava

ownership-breakdown
NYSE:DAVA Ownership Breakdown December 27th 2024

What Does The Institutional Ownership Tell Us About Endava?

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 Endava. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Endava's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE:DAVA Earnings and Revenue Growth December 27th 2024

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Endava. With a 15% stake, CEO John Cotterell is the largest shareholder. For context, the second largest shareholder holds about 5.6% of the shares outstanding, followed by an ownership of 5.4% by the third-largest shareholder.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.