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Institutions along with individual investors who hold considerable shares inDyno Nobel Limited (ASX:DNL) come under pressure; lose 4.3% of holdings value
The considerable ownership by individual investors in Dyno Nobel indicates that they collectively have a greater say in management and business strategy
50% of the business is held by the top 16 shareholders
If you want to know who really controls Dyno Nobel Limited (ASX:DNL), then you'll have to look at the makeup of its share registry. With 47% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Following a 4.3% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 44% stock also took a hit.
Let's delve deeper into each type of owner of Dyno Nobel, beginning with the chart below.
What Does The Institutional Ownership Tell Us About Dyno Nobel?
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.
As you can see, institutional investors have a fair amount of stake in Dyno Nobel. 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 Dyno Nobel's earnings history below. Of course, the future is what really matters.
ASX:DNL Earnings and Revenue Growth April 12th 2025
It looks like hedge funds own 8.4% of Dyno Nobel 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. Janchor Partners Limited is currently the company's largest shareholder with 8.4% of shares outstanding. Orbis Investment Management Limited is the second largest shareholder owning 8.3% of common stock, and The Vanguard Group, Inc. holds about 6.4% of the company stock.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 16 shareholders, meaning that no single shareholder has a majority interest in the ownership.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Dyno Nobel
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 most recent data indicates that insiders own less than 1% of Dyno Nobel Limited. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own AU$4.2m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
With a 47% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dyno Nobel. 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:
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 be aware of the 1 warning sign we've spotted with Dyno Nobel .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts .
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.
