Key Insights

• Dropsuite's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public

• 50% of the business is held by the top 12 shareholders

• Recent sales by insiders

A look at the shareholders of Dropsuite Limited (ASX:DSE) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Hedge funds, on the other hand, account for 31% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Dropsuite.

View our latest analysis for Dropsuite

What Does The Institutional Ownership Tell Us About Dropsuite?

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.

Institutions have a very small stake in Dropsuite. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.

It would appear that 31% of Dropsuite shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Topline Capital Management, LLC is currently the largest shareholder, with 31% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.0% and 4.5%, of the shares outstanding, respectively. Charif El-Ansari, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 12 shareholders, meaning that no single shareholder has a majority interest in the ownership.

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.