Key Insights

Insiders appear to have a vested interest in Dicker Data's growth, as seen by their sizeable ownership 63% of the business is held by the top 2 shareholders Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Dicker Data Limited (ASX:DDR) can tell us which group is most powerful. The group holding the most number of shares in the company, around 63% to be precise, is individual insiders. Put another way, the group faces the maximum upside potential (or downside risk).

So, insiders of Dicker Data have a lot at stake and every decision they make on the company’s future is important to them from a financial point of view.

Let's take a closer look to see what the different types of shareholders can tell us about Dicker Data.

See our latest analysis for Dicker Data  ownership-breakdown

What Does The Institutional Ownership Tell Us About Dicker Data?

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.

Since institutions own only a small portion of Dicker Data, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too. earnings-and-revenue-growth

Dicker Data is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO David Dicker with 32% of shares outstanding. For context, the second largest shareholder holds about 31% of the shares outstanding, followed by an ownership of 1.3% by the third-largest shareholder. Interestingly, the second-largest shareholder, Fiona Brown is also Top Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.



A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 63% stake.

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

Insider Ownership Of Dicker Data

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.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of Dicker Data Limited. This means they can collectively make decisions for the company. That means insiders have a very meaningful AU$1.1b stake in this AU$1.7b business. Most would argue this is a positive, showing strong alignment with shareholders. You can  click here to see if they have been selling down their stake.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Dicker Data. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Dicker Data better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk.  We've identified 2 warning signs  with Dicker Data (at least 1 which is a bit concerning)  , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this freereport on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.