What Type Of Shareholder Owns DMG Blockchain Solutions Inc.'s (CVE:DMGI)?

In this article:

Every investor in DMG Blockchain Solutions Inc. (CVE:DMGI) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

DMG Blockchain Solutions is a smaller company with a market capitalization of CA$14m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about DMGI.

View our latest analysis for DMG Blockchain Solutions

TSXV:DMGI Ownership Summary, September 11th 2019
TSXV:DMGI Ownership Summary, September 11th 2019

What Does The Institutional Ownership Tell Us About DMG Blockchain Solutions?

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.

We can see that DMG Blockchain Solutions does have institutional investors; and they hold 10.0% of the stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 DMG Blockchain Solutions, (below). Of course, keep in mind that there are other factors to consider, too.

TSXV:DMGI Income Statement, September 11th 2019
TSXV:DMGI Income Statement, September 11th 2019

Hedge funds don't have many shares in DMG Blockchain Solutions. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of DMG Blockchain Solutions

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Shareholders would probably be interested to learn that insiders own shares in DMG Blockchain Solutions Inc.. As individuals, the insiders collectively own CA$990k worth of the CA$14m company. Some would say this shows alignment of interests between shareholders and the board, though I generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public -- mostly retail investors -- own 83% of DMG Blockchain Solutions . With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand DMG Blockchain Solutions better, we need to consider many other factors.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

Advertisement