In This Article:
Key Insights
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Insiders appear to have a vested interest in DGL Group's growth, as seen by their sizeable ownership
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Simon Henry owns 54% of the company
To get a sense of who is truly in control of DGL Group Limited (ASX:DGL), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 57% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).
A quick look at our data suggests that insiders have been buying shares in the company recently. This might indicate that they expect share prices to rise in the near future.
Let's delve deeper into each type of owner of DGL Group, beginning with the chart below.
Check out our latest analysis for DGL Group
What Does The Lack Of Institutional Ownership Tell Us About DGL Group?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. Alternatively, there might be something about the company that has kept institutional investors away. DGL Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
DGL Group is not owned by hedge funds. With a 54% stake, CEO Simon Henry is the largest shareholder. This essentially means that they have significant control over the outcome or future of the company, which is why insider ownership is usually looked upon favourably by prospective buyers. The second and third largest shareholders are Spalding Holdings Pty Ltd and Kenneth Hall, with an equal amount of shares to their name at 1.9%.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of DGL Group
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.