Deep Yellow Limited's (ASX:DYL) top owners are retail investors with 60% stake, while 26% is held by institutions

In This Article:

Key Insights

  • Significant control over Deep Yellow by retail investors implies that the general public has more power to influence management and governance-related decisions

  • A total of 25 investors have a majority stake in the company with 40% ownership

  • Recent sales by insiders

If you want to know who really controls Deep Yellow Limited (ASX:DYL), 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 60% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutions, on the other hand, account for 26% of the company's stockholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's delve deeper into each type of owner of Deep Yellow, beginning with the chart below.

See our latest analysis for Deep Yellow

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Deep Yellow?

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.

Deep Yellow already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Deep Yellow's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Deep Yellow is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Paradice Investment Management Pty Ltd. with 8.0% of shares outstanding. For context, the second largest shareholder holds about 6.9% of the shares outstanding, followed by an ownership of 5.3% by the third-largest shareholder. Additionally, the company's CEO John Borshoff directly holds 2.0% of the total shares outstanding.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.