Insiders still own 63% of Dicker Data Limited (ASX:DDR) despite recent sales

editorial-team@simplywallst.com (Simply Wall St)

Sat, Mar 2, 2024, 5:15 PM 4 min read

If you want to know who really controls Dicker Data Limited (ASX:DDR), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 63% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Insiders own the top position in the company’s share registry despite recent sales and as a result, were the biggest beneficiaries of last week’s 3.7% gain.

In the chart below, we zoom in on the different ownership groups of Dicker Data.

View our latest analysis for Dicker Data

ownership-breakdown — ASX:DDR Ownership Breakdown March 3rd 2024

What Does The Institutional Ownership Tell Us About Dicker Data?

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.

Institutions have a very small stake in Dicker Data. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

earnings-and-revenue-growth — ASX:DDR Earnings and Revenue Growth March 3rd 2024

Dicker Data is not owned by hedge funds. With a 31% stake, CEO David Dicker is the largest shareholder. With 31% and 1.4% of the shares outstanding respectively, Fiona Brown and The Vanguard Group, Inc. are the second and third largest shareholders. Interestingly, the second-largest shareholder, Fiona Brown is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 62% stake.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Dicker Data

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

It seems that insiders own more than half the Dicker Data Limited stock. This gives them a lot of power. Given it has a market cap of AU$2.2b, that means insiders have a whopping AU$1.4b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dicker Data. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 3 warning signs we've spotted with Dicker Data (including 1 which is a bit unpleasant) .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.