In this article, I will take a quick look at Dagestan Energy Supply Company Public Joint-Stock Company’s (MISX:DASB) recent ownership structure – an unconventional investing subject, but an important one. Ownership structure of a company has been found to affect share performance over time. If an activist institution invests the same amount of capital in a stock as a passive long-term pension fund, the implications are potentially different for key corporate financing decisions such as the use of excess cash or the source of financing. While these are more of a long-term investor’s concern, short-term investors may find the impact of institutional trading overwhelming enough to lose out on what could be a potential opportunity. Now I will analyze DASB’s shareholder registry in more detail.View our latest analysis for Dagestan Energy Supply Company
Institutional OwnershipInstitutional investors transact in large blocks which can influence the momentum of stock prices, at least in the short-term, especially when there is a low level of public shares available on the market to trade. A low institutional ownership of 5.00% puts DASB on a list of companies that are not likely exposed to spikes in volatility resulting from institutional trading.
General Public OwnershipThe general public, with 8.30% stake, is also an important group of shareholders in DASB. This size of ownership, while considerably large for a public company, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company OwnershipAnother group of owners that a potential investor in DASB should consider are private companies, with a stake of 31.42%. While they invest more often due to strategic interests, an investment can also be driven by capital gains through share price appreciation. An ownership of this size indicates a strong financial backing and has the potential to influence DASB’s business strategy. Thus, investors should dig deeper into DASB’s business relations with these companies and how it can affect shareholder returns in the long-term.
With a low level of institutional ownership, investors in DASB need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices. However, ownership structure should not be the only determining factor when you’re building an investment thesis for DASB. Instead, you should be evaluating company-specific factors such as the intrinsic valuation, which is a key driver of Dagestan Energy Supply Company’s share price. I urge you to complete your research by taking a look at the following:
- 1. Financial Health: Is DASB’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- 2. Past Track Record: Has DASB been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of DASB’s historicals for more clarity.
- 3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.