Galaxy Digital Holdings Ltd.'s (TSE:GLXY) 14% loss last week hit both individual investors who own 69% as well as institutions

Key Insights

• Galaxy Digital Holdings' significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 29% of the business is held by the top 25 shareholders
• Insiders have been selling lately

To get a sense of who is truly in control of Galaxy Digital Holdings Ltd. (TSE:GLXY), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 69% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 27% came under pressure after market cap dropped to CA$10.0b last week,retail investors took the most losses.

Let's delve deeper into each type of owner of Galaxy Digital Holdings, beginning with the chart below.

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.

We can see that Galaxy Digital Holdings 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Galaxy Digital Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in Galaxy Digital Holdings. The company's largest shareholder is FMR LLC, with ownership of 15%. CI Global Asset Management is the second largest shareholder owning 3.0% of common stock, and Tidal Investments LLC 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Galaxy Digital Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Shareholders would probably be interested to learn that insiders own shares in Galaxy Digital Holdings Ltd.. This is a big company, so it is good to see this level of alignment. Insiders own CA$395m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public -- including retail investors -- own 69% of Galaxy Digital Holdings. With this amount 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 vote on acquisitions or mergers 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 Galaxy Digital Holdings better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Galaxy Digital Holdings (including 2 which are potentially serious) .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.