D-Market Elektronik Hizmetler ve Ticaret A.S.'s (NASDAQ:HEPS) last week's 11% decline must have disappointed retail investors who have a significant stake

Key Insights

• The considerable ownership by retail investors in D-Market Elektronik Hizmetler ve Ticaret indicates that they collectively have a greater say in management and business strategy
• 41% of the business is held by the top 25 shareholders
• Insider ownership in D-Market Elektronik Hizmetler ve Ticaret is 21%

To get a sense of who is truly in control of D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are retail investors with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While insiders, who own 21% shares weren’t spared from last week’s US$55m market cap drop, retail investors as a group suffered the maximum losses

In the chart below, we zoom in on the different ownership groups of D-Market Elektronik Hizmetler ve Ticaret.

Check out our latest analysis for D-Market Elektronik Hizmetler ve Ticaret

What Does The Institutional Ownership Tell Us About D-Market Elektronik Hizmetler ve Ticaret?

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 companies to have some institutions on the register, especially if they are growing.

We can see that D-Market Elektronik Hizmetler ve Ticaret does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at D-Market Elektronik Hizmetler ve Ticaret's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in D-Market Elektronik Hizmetler ve Ticaret. Hanzade Vasfiye Boyner is currently the largest shareholder, with 21% of shares outstanding. Franklin Resources, Inc. is the second largest shareholder owning 13% of common stock, and Hosking Partners LLP holds about 1.9% of the company stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 D-Market Elektronik Hizmetler ve Ticaret

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.

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.

Our most recent data indicates that insiders own a reasonable proportion of D-Market Elektronik Hizmetler ve Ticaret A.S.. It has a market capitalization of just US$432m, and insiders have US$93m worth of shares in their own names. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 59% stake in D-Market Elektronik Hizmetler ve Ticaret, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand D-Market Elektronik Hizmetler ve Ticaret better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with D-Market Elektronik Hizmetler ve Ticaret (including 1 which shouldn't be ignored) .

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.