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If you want to know who really controls Dropsuite Limited (ASX:DSE), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Meanwhile, hedge funds make up 24% of the company’s shareholders.
Let's take a closer look to see what the different types of shareholders can tell us about Dropsuite.
View our latest analysis for Dropsuite
What Does The Lack Of Institutional Ownership Tell Us About Dropsuite?
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 could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. Alternatively, there might be something about the company that has kept institutional investors away. Dropsuite might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
It looks like hedge funds own 24% of Dropsuite shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our data shows that Topline Capital Partners, LLC is the largest shareholder with 23% of shares outstanding. John Fearon is the second largest shareholder owning 5.4% of common stock, and Charif El-Ansari holds about 4.9% of the company stock. Charif El-Ansari, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
A deeper look at our ownership data shows that the top 18 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Dropsuite
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.