Diana Shipping Inc.'s (NYSE:DSX) top owners are retail investors with 44% stake, while 26% is held by insiders

In This Article:

Key Insights

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

  • A total of 7 investors have a majority stake in the company with 50% ownership

  • 26% of Diana Shipping is held by insiders

To get a sense of who is truly in control of Diana Shipping Inc. (NYSE:DSX), it is important to understand the ownership structure of the business. With 44% stake, retail investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And individual insiders on the other hand have a 26% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

In the chart below, we zoom in on the different ownership groups of Diana Shipping.

See our latest analysis for Diana Shipping

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Diana Shipping?

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 Diana Shipping 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 Diana Shipping's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

Hedge funds don't have many shares in Diana Shipping. With a 17% stake, CEO Semiramis Paliou is the largest shareholder. Sea Trade Holdings Inc. is the second largest shareholder owning 12% of common stock, and Anastasios Margaronis holds about 8.8% of the company stock. Interestingly, the third-largest shareholder, Anastasios Margaronis is also a Member of the Board of Directors, again, indicating strong insider ownership amongst the company's top shareholders.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.