Institutional owners may ignore DHT Holdings, Inc.'s (NYSE:DHT) recent US$56m market cap decline as longer-term profits stay in the green
In This Article:
Key Insights
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Institutions' substantial holdings in DHT Holdings implies that they have significant influence over the company's share price
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52% of the business is held by the top 11 shareholders
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Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
Every investor in DHT Holdings, Inc. (NYSE:DHT) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 62% 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.
No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 3.2% in value last week. However, the 23% one-year return to shareholders might have softened the blow. But they would probably be wary of future losses.
Let's delve deeper into each type of owner of DHT Holdings, beginning with the chart below.
Check out our latest analysis for DHT Holdings
What Does The Institutional Ownership Tell Us About DHT Holdings?
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.
DHT Holdings 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 DHT Holdings' 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. We note that hedge funds don't have a meaningful investment in DHT Holdings. Our data shows that Sohmen Family Foundation is the largest shareholder with 13% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 12% and 8.0%, of the shares outstanding, respectively. Furthermore, CEO Svein Harfjeld is the owner of 0.6% of the company's shares.
After doing some more digging, we found that the top 11 have the combined ownership of 52% in the company, suggesting that no single shareholder has significant control over the company.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.