In This Article:
Key Insights
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The considerable ownership by individual investors in Generation Development Group indicates that they collectively have a greater say in management and business strategy
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The top 8 shareholders own 50% of the company
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Insider ownership in Generation Development Group is 35%
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 36% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, individual insiders make up 35% of the company’s shareholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
Let's delve deeper into each type of owner of Generation Development Group, beginning with the chart below.
Check out 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 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 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. John Wheeler is currently the largest shareholder, with 9.7% of shares outstanding. River Capital Pty Ltd. is the second largest shareholder owning 8.4% of common stock, and Wilson Asset Management (International) Pty Ltd. holds about 7.6% of the company stock.
We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.