While institutions invested in Galaxy Digital Holdings Ltd. (NASDAQ:GLXY) benefited from last week's 19% gain, retail investors stood to gain the most

Key Insights

• Significant control over Galaxy Digital Holdings by retail investors implies that the general public has more power to influence management and governance-related decisions
• 29% of the business is held by the top 25 shareholders
• Institutions own 26% of Galaxy Digital Holdings

Our free stock report includes 2 warning signs investors should be aware of before investing in Galaxy Digital Holdings. Read for free now.

A look at the shareholders of Galaxy Digital Holdings Ltd. (NASDAQ:GLXY) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 69% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that benefitted the most from last week’s US$478m market cap gain, institutions too had a 26% share in those profits.

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

Check out 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 can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Galaxy Digital Holdings' earnings history below. Of course, the future is what really matters.

We note that hedge funds don't have a meaningful investment in Galaxy Digital Holdings. Looking at our data, we can see that the largest shareholder is FMR LLC with 14% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 2.3% and 1.5%, of the shares outstanding, respectively.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Galaxy Digital Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

We can report that insiders do own shares in Galaxy Digital Holdings Ltd.. The insiders have a meaningful stake worth US$193m. Most would see this as a real positive. If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, mostly comprising of individual investors, collectively holds 69% of Galaxy Digital Holdings shares. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Galaxy Digital Holdings you should be aware of, and 1 of them doesn't sit too well with us.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.