Market cap

The market capitalization of Duke Royalty Limited (LON:DUKE) reached £141 million last week, benefiting both individual investors who own 53% and institutions

To get an idea of ​​who really controls Duke Royalty Limited (LON: DUKE), it is important to understand the ownership structure of the company. And the group that holds the biggest slice of the pie are individual investors with 53% ownership. That is, the group will benefit the most if the stock goes up (or loses the most if there is a downturn).

While individual investors were the group that reaped the most benefit after last week’s 11% price gain, institutions also received a 39% cut.

Let’s dive deeper into each Duke Royalty owner type, starting with the chart below.

Check out our latest analysis for Duke Royalty

AIM: DUKE Ownership Breakdown July 19, 2022

What does institutional ownership tell us about Duke Royalty?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

We can see that Duke Royalty has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out Duke Royalty’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
AIM:DUCE Earnings and Revenue Growth July 19, 2022

Hedge funds appear to own 5.7% of Duke Royalty shares. This is interesting because hedge funds can be very active and militant. Many are looking for medium-term catalysts that will drive the stock price higher. M&G Investment Management Limited is currently the largest shareholder, with 5.8% of the outstanding shares. In comparison, the second and third shareholders hold approximately 5.7% and 5.2% of the shares. Additionally, the company’s CEO, Neil Johnson, directly owns 1.1% of the total shares outstanding.

Our studies suggest that the top 18 shareholders collectively control less than half of the company’s stock, which means that the company’s stock is widely distributed and there is no dominant shareholder.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. Although there is some analyst coverage, the company is probably not widely covered. So it could attract more attention, on the track.

Duke Royalty Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

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.

Shareholders would likely be interested to learn that insiders hold shares of Duke Royalty Limited. In their own name, insiders hold £3.6m worth of shares in the £141m UK company. It’s good to see insider investing, but we generally like to see higher insider holdings. It might be worth checking to see if these insiders have bought.

General public property

The general public, including retail investors, owns 53% of Duke Royalty. This size of ownership gives mainstream investors a certain collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed corporate acquisitions.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Duke Royalty, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 5 warning signs with Duke Royalty (at least 2 that make us uncomfortable), and understanding them should be part of your investment process.

But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.