In This Article:
Key Insights
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Significant insider control over Danaos implies vested interests in company growth
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The top 2 shareholders own 52% of the company
A look at the shareholders of Danaos Corporation (NYSE:DAC) can tell us which group is most powerful. The group holding the most number of shares in the company, around 50% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
As a result, insiders were the biggest beneficiaries of last week’s 4.2% gain.
Let's delve deeper into each type of owner of Danaos, beginning with the chart below.
See our latest analysis for Danaos
What Does The Institutional Ownership Tell Us About Danaos?
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.
We can see that Danaos does have institutional investors; and they hold a good portion of the company's stock. 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 Danaos' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Danaos. The company's CEO John Coustas is the largest shareholder with 48% of shares outstanding. With 3.4% and 2.2% of the shares outstanding respectively, Acadian Asset Management LLC and RBF Capital LLC are the second and third largest shareholders.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence 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. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Danaos
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.