Key Insights
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Given the large stake in the stock by institutions, D4t4 Solutions' stock price might be vulnerable to their trading decisions
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A total of 6 investors have a majority stake in the company with 53% ownership
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Past performance of a company along with ownership data serve to give a strong idea about prospects for a business
To get a sense of who is truly in control of D4t4 Solutions Plc (LON:D4T4), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 78% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.
In the chart below, we zoom in on the different ownership groups of D4t4 Solutions.
See our latest analysis for D4t4 Solutions
What Does The Institutional Ownership Tell Us About D4t4 Solutions?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
D4t4 Solutions 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 D4t4 Solutions' earnings history below. Of course, the future is what really matters.
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. D4t4 Solutions is not owned by hedge funds. Our data shows that Canaccord Genuity Asset Management Limited, Asset Management Arm is the largest shareholder with 16% of shares outstanding. Investec Wealth & Investment Limited is the second largest shareholder owning 9.6% of common stock, and Ennismore Fund Management Limited holds about 9.1% of the company stock.
We also observed that the top 6 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 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.