Key Insights Given the large stake in the stock by institutions, Dover's stock price might be vulnerable to their trading decisions The top 20 shareholders own 50% of the company Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Every investor in Dover Corporation (NYSE:DOV) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 84% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company. As a result, institutional investors endured the highest losses last week after market cap fell by US$790m. The recent loss, which adds to a one-year loss of 3.6% for stockholders, may not sit well with this group of investors. Often called “market movers", institutions wield significant power in influencing the price dynamics of any stock. Hence, if weakness in Dover's share price continues, institutional investors may feel compelled to sell the stock, which might not be ideal for individual investors. In the chart below, we zoom in on the different ownership groups of Dover. See our latest analysis for Dover NYSE:DOV Ownership Breakdown May 22nd 2025 What Does The Institutional Ownership Tell Us About Dover? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. As you can see, institutional investors have a fair amount of stake in Dover. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Dover, (below). Of course, keep in mind that there are other factors to consider, too.NYSE:DOV Earnings and Revenue Growth May 22nd 2025 Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in Dover. The Vanguard Group, Inc. is currently the largest shareholder, with 12% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.2% and 5.7% of the stock. A closer look at our ownership figures suggests that the top 20 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. Story Continues While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. Insider Ownership Of Dover 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. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our data suggests that insiders own under 1% of Dover Corporation in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$105m of stock. Arguably recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. General Public Ownership The general public-- including retail investors -- own 15% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Next Steps: It's always worth thinking about the different groups who own shares in a company. But to understand Dover better, we need to consider many other factors. I like to dive deeper into how a company has performed in the past. You can access this interactive graph of past earnings, revenue and cash flow, for free. 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. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments
In the wake of Dover Corporation's (NYSE:DOV) latest US$790m market cap drop, institutional owners may be forced to take severe actions
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