In This Article:
Key Insights
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The considerable ownership by retail investors in Definity Financial indicates that they collectively have a greater say in management and business strategy
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The top 25 shareholders own 42% of the company
Every investor in Definity Financial Corporation (TSE:DFY) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are retail investors with 54% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Retail investors gained the most after market cap touched CA$7.1b last week, while institutions who own 34% also benefitted.
Let's delve deeper into each type of owner of Definity Financial, beginning with the chart below.
See our latest analysis for Definity Financial
What Does The Institutional Ownership Tell Us About Definity Financial?
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.
Definity Financial already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Definity Financial's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Definity Financial. Looking at our data, we can see that the largest shareholder is T. Rowe Price Group, Inc. with 10% of shares outstanding. With 10% and 3.0% of the shares outstanding respectively, Swiss Re AG and FMR LLC are the second and third largest shareholders.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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 Definity Financial
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.