WEBULL

Private equity firms in Drilling Tools International Corporation (NASDAQ:DTI) are its biggest bettors, and their bets paid off as stock gained 21% last week

Simply Wall St · 4d ago

Key Insights

  • Drilling Tools International's significant private equity firms ownership suggests that the key decisions are influenced by shareholders from the larger public
  • A total of 3 investors have a majority stake in the company with 54% ownership
  • Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

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To get a sense of who is truly in control of Drilling Tools International Corporation (NASDAQ:DTI), it is important to understand the ownership structure of the business. We can see that private equity firms own the lion's share in the company with 41% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private equity firms were the biggest beneficiaries of last week’s 21% gain.

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

View our latest analysis for Drilling Tools International

ownership-breakdown
NasdaqCM:DTI Ownership Breakdown January 6th 2026

What Does The Institutional Ownership Tell Us About Drilling Tools International?

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.

Drilling Tools International 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 Drilling Tools International's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NasdaqCM:DTI Earnings and Revenue Growth January 6th 2026

It looks like hedge funds own 5.4% of Drilling Tools International shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our data shows that HEP Partners LLC is the largest shareholder with 41% of shares outstanding. In comparison, the second and third largest shareholders hold about 7.9% and 5.4% of the stock. Furthermore, CEO R. Prejean is the owner of 1.2% of the company's shares.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 Drilling Tools International

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in Drilling Tools International Corporation. As individuals, the insiders collectively own US$8.3m worth of the US$101m company. It is good to see some investment by insiders, but we usually like to see higher insider holdings. It might be worth checking if those insiders have been buying.

General Public Ownership

With a 31% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Drilling Tools International. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Equity Ownership

With a stake of 41%, private equity firms could influence the Drilling Tools International board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 8.0%, of the Drilling Tools International stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

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. To that end, you should be aware of the 1 warning sign we've spotted with Drilling Tools International .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.