Key Insights

• DRDGOLD's significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public

• 50% of the company is held by a single shareholder (Sibanye Stillwater Limited)

• Institutions own 24% of DRDGOLD

If you want to know who really controls DRDGOLD Limited (NYSE:DRD), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 50% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, individual investors make up 26% of the company’s shareholders.

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

View our latest analysis for DRDGOLD

What Does The Institutional Ownership Tell Us About DRDGOLD?

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.

DRDGOLD 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. 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 DRDGOLD's historic earnings and revenue below, but keep in mind there's always more to the story.

DRDGOLD is not owned by hedge funds. Our data shows that Sibanye Stillwater Limited is the largest shareholder with 50% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. For context, the second largest shareholder holds about 6.2% of the shares outstanding, followed by an ownership of 3.3% by the third-largest shareholder.

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 DRDGOLD

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.