Key Insights

• The considerable ownership by retail investors in Dynex Capital indicates that they collectively have a greater say in management and business strategy

• 37% of the business is held by the top 25 shareholders

• Institutional ownership in Dynex Capital is 41%

A look at the shareholders of Dynex Capital, Inc. (NYSE:DX) can tell us which group is most powerful. With 58% stake, retail investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Institutions, on the other hand, account for 41% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

Let's take a closer look to see what the different types of shareholders can tell us about Dynex Capital.

See our latest analysis for Dynex Capital

What Does The Institutional Ownership Tell Us About Dynex Capital?

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.

Dynex Capital already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Dynex Capital's earnings history below. Of course, the future is what really matters.

Dynex Capital is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 8.8% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 5.1% of common stock, and Victory Capital Management Inc. holds about 2.8% of the company stock. Additionally, the company's CEO Byron Boston directly holds 0.7% of the total shares outstanding.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.