In This Article:
Key Insights
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The considerable ownership by retail investors in Generation Development Group indicates that they collectively have a greater say in management and business strategy
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A total of 22 investors have a majority stake in the company with 41% ownership
If you want to know who really controls Generation Development Group Limited (ASX:GDG), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 59% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While retail investors were the group that reaped the most benefits after last week’s 11% price gain, insiders also received a 23% cut.
Let's delve deeper into each type of owner of Generation Development Group, beginning with the chart below.
View our latest analysis for Generation Development Group
What Does The Institutional Ownership Tell Us About Generation Development Group?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors have a fair amount of stake in Generation Development Group. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Generation Development Group's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Generation Development Group. River Capital Pty Ltd. is currently the largest shareholder, with 8.7% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.1% and 4.9%, of the shares outstanding, respectively.
A deeper look at our ownership data shows that the top 22 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.
Insider Ownership Of Generation Development Group
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.