Yahoo Finance Institutions along with individual investors who hold considerable shares inGalaxy Digital Holdings Ltd. (TSE:GLXY) come under pressure; lose 4.2% of holdings value
Key Insights
The considerable ownership by individual investors in Galaxy Digital Holdings indicates that they collectively have a greater say in management and business strategy
17% of the business is held by the top 25 shareholders
If you want to know who really controls Galaxy Digital Holdings Ltd. (TSE:GLXY), then you'll have to look at the makeup of its share registry. With 82% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
While institutions, who own 14% shares weren’t spared from last week’s CA$88m market cap drop, individual investors as a group suffered the maximum losses
In the chart below, we zoom in on the different ownership groups of Galaxy Digital Holdings.
View our latest analysis for Galaxy Digital Holdings
What Does The Institutional Ownership Tell Us About Galaxy Digital Holdings?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Galaxy Digital Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Galaxy Digital Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Galaxy Digital Holdings. CI Global Asset Management is currently the company's largest shareholder with 4.6% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.5% and 1.2%, of the shares outstanding, respectively. Michael Daffey, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Galaxy Digital Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
We can report that insiders do own shares in Galaxy Digital Holdings Ltd.. The insiders have a meaningful stake worth CA$225m. Most would see this as a real positive. Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 82% of Galaxy Digital Holdings shares. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Galaxy Digital Holdings better, we need to consider many other factors. For instance, we've identified 5 warning signs for Galaxy Digital Holdings (3 are a bit unpleasant) that you should be aware of.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
