To get a sense of who is truly in control of DP Eurasia N.V. (LON:DPEU), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
And individual investors on the other hand have a 20% ownership in the company.
Let's delve deeper into each type of owner of DP Eurasia, beginning with the chart below.
View our latest analysis for DP Eurasia
What Does The Institutional Ownership Tell Us About DP Eurasia?
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.
We can see that DP Eurasia does have institutional investors; and they hold a good portion of the company's stock. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see DP Eurasia's historic earnings and revenue below, but keep in mind there's always more to the story.
It would appear that 5.5% of DP Eurasia shares are controlled by hedge funds. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Jubilant FoodWorks Limited is currently the largest shareholder, with 49% of shares outstanding. In comparison, the second and third largest shareholders hold about 13% and 5.5% of the stock.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
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.
Insider Ownership Of DP Eurasia
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.