In This Article:
Key Insights
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Significant control over Donegal Group by private companies implies that the general public has more power to influence management and governance-related decisions
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The largest shareholder of the company is Donegal Mutual Insurance Company with a 51% stake
Every investor in Donegal Group Inc. (NASDAQ:DGIC.A) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 51% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Meanwhile, institutions make up 31% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
In the chart below, we zoom in on the different ownership groups of Donegal Group.
See our latest analysis for Donegal Group
What Does The Institutional Ownership Tell Us About Donegal Group?
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 Donegal Group. 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 Donegal Group's earnings history below. Of course, the future is what really matters.
Donegal Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Donegal Mutual Insurance Company with 51% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. In comparison, the second and third largest shareholders hold about 5.8% and 4.9% of the stock.
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 Donegal Group
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. 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.