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• Given the large stake in the stock by institutions, Distribution Finance Capital Holdings’ stock price might be vulnerable to their trading decisions

• 52% of the business is held by the top 5 shareholders

• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls Distribution Finance Capital Holdings plc (LON:DFCH), then you’ll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 79% to be precise, is institutions. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let’s delve deeper into each type of owner of Distribution Finance Capital Holdings, beginning with the chart below.

Check out our latest analysis for Distribution Finance Capital 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.

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

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 Distribution Finance Capital Holdings. Looking at our data, we can see that the largest shareholder is Watrium AS with 19% of shares outstanding. With 11% and 9.1% of the shares outstanding respectively, Janus Henderson Group plc and River Global Investors LLP are the second and third largest shareholders.

Story Continues

BT Group plc (LON:BT.A) shareholders are probably feeling a little disappointed, since its shares fell 3.4% to UK£1.79 in the week after its latest half-year results. It was an okay result overall, with revenues coming in at UK£9.8b, roughly what the analysts had been expecting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, BT Group’s 15 analysts currently expect revenues in 2026 to be UK£19.9b, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 53% to UK£0.15. Before this earnings report, the analysts had been forecasting revenues of UK£19.9b and earnings per share (EPS) of UK£0.14 in 2026. So the consensus seems to have become somewhat more optimistic on BT Group’s earnings potential following these results.

Check out our latest analysis for BT Group

There’s been no major changes to the consensus price target of UK£2.06, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock’s valuation. The consensus price target is just an average of individual analyst targets, so – it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on BT Group, with the most bullish analyst valuing it at UK£3.12 and the most bearish at UK£1.35 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would also point out that the forecast 1.1% annualised revenue decline to the end of 2026 is roughly in line with the historical trend, which saw revenues shrink 1.3% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 1.9% per year. So while a broad number of companies are forecast to grow, unfortunately BT Group is expected to see its revenue affected worse than other companies in the industry.

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BT Group’s earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that BT Group’s revenue is expected to perform worse than the wider industry. The consensus price target held steady at UK£2.06, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple BT Group analysts – going out to 2028, and you can see them free on our platform here.

Don’t forget that there may still be risks. For instance, we’ve identified 3 warning signs for BT Group that you should be aware of.

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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.