DUG Technology Ltd's (ASX:DUG) market cap up AU$21m last week, benefiting both individual investors who own 47% as well as insiders
Simply Wall St
4 min read
Key Insights
Significant control over DUG Technology by individual investors implies that the general public has more power to influence management and governance-related decisions
51% of the business is held by the top 4 shareholders
A look at the shareholders of DUG Technology Ltd (ASX:DUG) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 47% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While individual investors were the group that reaped the most benefits after last week’s 15% price gain, insiders also received a 30% cut.
Let's delve deeper into each type of owner of DUG Technology, beginning with the chart below.
What Does The Institutional Ownership Tell Us About DUG Technology?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
DUG Technology already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 DUG Technology's earnings history below. Of course, the future is what really matters.
ASX:DUG Earnings and Revenue Growth July 19th 2023
It would appear that 8.0% of DUG Technology shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Looking at our data, we can see that the largest shareholder is the CEO Matthew Lamont with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 14% and 9.2% of the stock.
On looking further, we found that 51% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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 some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of DUG Technology
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders maintain a significant holding in DUG Technology Ltd. Insiders have a AU$50m stake in this AU$164m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public, who are usually individual investors, hold a 47% stake in DUG Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand DUG Technology better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with DUG Technology .
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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