A look at the shareholders of Diamond Hill Investment Group, Inc. (NASDAQ: DHIL) can tell us which group is more powerful. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. We also tend to see a decrease in the number of insiders in companies that were previously state-owned.
Diamond Hill Investment Group is not a large corporation by global standards. It has a market cap of $ 687 million, which means it wouldn’t get the attention of many institutional investors. In the graphic below, we can see that the institutions are visible on the share register. Let’s take a closer look at what different types of shareholders can tell us about Diamond Hill Investment Group.
Breakdown of the NasdaqGS property: DHIL November 16, 2021
What does institutional ownership tell us about Diamond Hill Investment Group?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
As you can see, institutional investors hold a significant share of the capital of Diamond Hill Investment Group. This implies that analysts working for these institutions have reviewed the action and appreciate it. But like everyone else, they could be wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Diamond Hill Investment Group’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
NasdaqGS: DHIL Profits and Revenue Growth November 16, 2021
Since institutional investors own more than half of the issued shares, the board will likely need to pay attention to their preferences. Diamond Hill Investment Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 8.5% of the shares outstanding. The second and third shareholders are The Vanguard Group, Inc. and Royce & Associates, LP, with an equal number of shares in their name at 5.0%. In addition, the company’s CEO, Heather Brilliant, directly owns 1.0% of the total shares outstanding.
A closer look at our ownership figures suggests that the top 16 shareholders have a combined 50% ownership, implying that no shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. We are not seeing any analyst coverage of the stock at this time, so the company is unlikely to be widely held.
Insider ownership of Diamond Hill Investment Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own shares in Diamond Hill Investment Group, Inc. On their own behalf, insiders own $ 24 million in shares of the $ 687 million company. Some would say it shows the alignment of interests between shareholders and the board. But it might be worth checking out if these insiders have sold.
General public property
The general public, including retail investors, own 31% of the company’s capital and therefore cannot be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Like risks, for example. Every business has them, and we’ve spotted 2 warning signs for Diamond Hill Investment Group (1 of which is a bit unpleasant!) to know.
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NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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