key insights
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Given that institutional investors have significant stakes in the stock, Digital Turbine’s stock price may be sensitive to trading decisions by institutional investors.
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A total of 12 investors hold a majority stake in the company, with 50% ownership.
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Analyst forecast data, combined with ownership research, can help you better assess a company’s future performance.
Every investor in Digital Turbine, Inc. (NASDAQ:APPS) should be aware of the most powerful shareholder groups. And the group with the largest slice of the pie is institutions with 67% ownership. In other words, this group faces the greatest upside potential (or downside risk).
Because institutional investors have access to large amounts of capital, their market trends tend to be closely monitored by retail and retail investors. Therefore, having significant institutional investors invested in a company is often considered a desirable characteristic.
Let’s take a closer look to see what different types of shareholders can tell us about Digital Turbine.
Check out our latest analysis for Digital Turbine.
What does institutional ownership tell us about digital turbines?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
We can see that Digital Turbine has institutional investors. And they own a significant portion of the company’s stock. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. If multiple financial institutions change their view on a stock at the same time, you could see the stock price drop fast. It is therefore worth checking Digital Turbine’s earnings history, below. Of course, what really matters is the future.
Institutional investors own more than half of the outstanding shares, so the board will need to pay attention to their preferences. Hedge funds don’t have many shares in Digital Turbine. Looking at our data, we see that the largest shareholder is BlackRock, Inc. with his 14% of shares outstanding. Meanwhile, the second and third largest shareholders hold 12% and 5.9% of the shares outstanding, respectively. Additionally, CEO William Stone owns his 1.7% of the company’s shares.
Upon further investigation, we found that the top 12 companies collectively own 50% of the company, suggesting that no single shareholder has significant control over the company .
Researching institutional ownership is a good way to assess and filter a stock’s expected performance. The same thing can be accomplished by studying analyst sentiment. There are a significant number of analysts covering this stock, so it might be useful to know their aggregate forecast for the future.
Digital Turbine Insider Ownership
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
Insider ownership is positive when it signals leaders 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 depending on the situation.
Our most recent data shows that insiders own some shares in Digital Turbine, Inc. As an individual, the insiders in total make him own US$27m worth of the US$692m company. This shows at least some consistency. You can click here to see if insiders have been buying or selling.
Public ownership
The general public, usually retail investors, owns 23% of Digital Turbine’s shares. While this group doesn’t necessarily call the shots, it can certainly have a big influence on how the company is run.
private equity ownership
The private equity firm holds a 5.9% stake and may have influence on Digital Turbine’s board of directors. Some may like this because private equity can be activists who hold management accountable. However, private equity can also be sold by taking a company public.
Next steps:
It’s always worth thinking about the different groups who own shares in a company. However, to better understand digital turbines, many other factors need to be considered. For example, we identified 1 digital turbine warning sign What you need to know.
after all the future is most important.You can access this free A report on analyst forecasts for a company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.