WEBULL

An excellent week for Hudaco Industries Limited's (JSE:HDC) institutional owners who own 78% as one-year returns inch higher

Simply Wall St · 01/03 06:55

Key Insights

  • Institutions' substantial holdings in Hudaco Industries implies that they have significant influence over the company's share price
  • The top 6 shareholders own 52% of the company
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

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A look at the shareholders of Hudaco Industries Limited (JSE:HDC) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 78% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And things are looking up for institutional investors after the company gained R568m in market cap last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 6.7%.

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

See our latest analysis for Hudaco Industries

ownership-breakdown
JSE:HDC Ownership Breakdown January 3rd 2026

What Does The Institutional Ownership Tell Us About Hudaco Industries?

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.

As you can see, institutional investors have a fair amount of stake in Hudaco Industries. 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 Hudaco Industries' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
JSE:HDC Earnings and Revenue Growth January 3rd 2026

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 Hudaco Industries. Looking at our data, we can see that the largest shareholder is Public Investment Corporation Limited with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 11% and 10.0% of the stock. Furthermore, CEO Graham Dunford is the owner of 2.8% of the company's shares.

We did some more digging and found that 6 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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.

Insider Ownership Of Hudaco Industries

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can report that insiders do own shares in Hudaco Industries Limited. It has a market capitalization of just R6.0b, and insiders have R279m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 17% stake in Hudaco Industries. 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:

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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Hudaco Industries you should know about.

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.