key insights
-
Significant insider ownership in Dicker Data suggests an inherent interest in expanding the company
-
Top 2 shareholders own 62% of the company
-
Recent Sales by Insiders
If you want to know who actually controls Dicker Data Limited (ASX:DDR), you’ll need to take a look at its shared registry configuration. And the group with the biggest slice of the pie are individual insiders with 63% ownership. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Despite the recent sales, insiders hold top positions on the company’s share registry, and as a result were the biggest beneficiaries of last week’s 3.7% rise.
The chart below zooms in on the different ownership groups of Dicker Data.
See our latest analysis for Dicker Data
What does institutional ownership tell us about Dicker’s data?
Institutions typically measure a stock against a benchmark when reporting to their own investors, so enthusiasm for a stock often increases once it’s included in a major index. We would expect most companies to have some institutions on their register, especially if they are growing.
Each institution’s investment ratio in Dicker Data is extremely low. This indicates that while the company has received attention from some funds, it is not particularly popular among professional investors at the moment. So if the company can improve itself over time, we may see more institutional investors buying into it in the future. It is not uncommon to see a big share price rise if multiple institutional investors try to buy into a stock at the same time. So check out its historical earnings trajectory, below. However, remember that the most important thing is the future.
Dicker Data is not owned by hedge funds. CEO David Dicker will become the company’s largest shareholder with a 31% stake. Fiona Brown and The Vanguard Group are the second and third largest shareholders with 31% and 1.4% of the shares outstanding, respectively. Interestingly, Fiona Brown, the second largest shareholder, is also a top key executive, indicating strong insider ownership among the company’s top shareholders.
After taking a closer look at the shareholder registry, we found that 2 of the top shareholders have a significant ownership stake in the company, with a 62% stake.
Researching institutional ownership is a good way to assess and filter a stock’s expected performance. The same can be done by studying analyst sentiment. There are a significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.
Insider ownership of dicker data
The definition of a company insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, and at least captures board members. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.
It appears that insiders own more than half of Dicker Data Limited shares. This gives them great power. Given that the company has a market capitalization of AU$2.2b, insiders have a whopping AU$1.4b worth of shares in their own names. It’s good to see this level of investment. You can see if insiders have sold any shares here.
Open to the public
With a 32% stake, the general public (mainly individual investors) has some influence over Dicker Data. While this group doesn’t necessarily call the shots, it can certainly have a big 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. for that purpose, 3 warning signs I discovered this (and one slightly unpleasant one) on Dicker Data.
If you’re like me, you might want to consider whether this company will grow or shrink. Luckily you can check this free report showing analyst forecasts for its future.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
