Dropsuite shares (ASX: DSE) ended the last week of trading down 4.92%, pulling shareholders into the red YTD, now -3.33% in 2024. Longer term holders have a lot of gains still to hold on to, with 38.1% over the prevailing 12 months still keeping the majority above water.

Longer term holders will also be used to some whipsaw trading in the DSE shares, with almost 40% swings seen in both directions back in July 2023 with ATHs of 0.38 being closely followed by a pullback to the 0.24 level. Having stabilised significantly since that point, tech stock enthusiasts may be taking a closer look at Dropsuite. With this in mind, what is the mix of shareholders in Dropsuite able to ride out such waves, and what do analysts make of DSE?

Shareholder Composition Supported By Strong Insider Holdings

It is an intriguing alignment of shareholder dynamics, as a notable case where retail investors hold the reins of power. With these individual investors owning approximately 46.5% of the company, they form the bedrock of Dropsuite’s ownership structure. This considerable stake implies that the collective decisions and future of the tech company are significantly influenced by the individual shareholders, who may be numerous in number and diverse in their investment strategies and goals.

The influence of retail investors is juxtaposed with substantial hedge fund interest. Hedge funds account for 29.7% of Dropsuite’s shares (206,841,465), signalling their expectation for catalysts that could engender a spike in the share price. Indeed, hedge funds are renowned for seeking investment opportunities that present substantial returns, often through active involvement in company operations or strategic direction.

Dropsuite’s largest shareholder, Topline Capital Management, LLC, commands a 30% share of the company’s equity, positioning it as a major influence in company affairs. Topline are also one of the largest recent accumulators of DSE shares, with 3 major purchases since July last year. 9,316,223 shares were added at the end of July 2023 at a price of $0.31, 9,316,223 at $0.27 in October, and a further 8,136,358 DSE shares were added to the holdings in December, at a lower price point of $0.24.


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Despite these significant stakes, the collective grip on Dropsuite is fragmented, with the top 13 shareholders together owning just 50% of the company. Such a distribution hints at a balanced playing field where no single investor wields overwhelming control.

Adding another layer of nuance to the Dropsuite ownership story is the level of insider investment, which is a significant one. Insiders, including those on the board and in executive positions, have vested interests amounting to 18.7% (130,108,150) Dropsuite shares. This ownership can be taken as a reflection of their confidence in the company’s trajectory and their commitment to aligning their interests with those of the broader shareholder community.

Analysts Positive On DSE – Price Targets Lofty

The current average price target from analysts covering ASX: DSE is a very healthy $0.39. This would represent a very significant ~34% upside from the current level of $0.29. With the highest price target of $0.43, set against the low mark of $0.34, analysts covering the stock are overwhelming positive about its’ outlook.

Holding 4 ‘buy’ ratings. 2 ‘strong buys’, and 1 ‘hold’ from the 7 analysts on file shows that consensus is very much with DSE shareholders over the next 12 months.

For the vast number of retail shareholders backing Dropsuite, these marks will be well received, and the next steps after that will be of great interest. Beyond mere numbers, these insights into shareholder breakdown, and the strength of holdings from insiders can help provide a level of comfort to holders that interests are aligned across the board. Now it’s time for Dropsuite to turn the tide for shareholders in 2024, and begin to turn the red of the last weeks trading into green if sentiment is to maintain this positive long term.

With the last quarterly business report not quite living up to the high bars set in the preceding period, we will now be watching the wires for the next update. This appears likely some stage in the next couple of weeks, and barring anything major in between, could be the next potential catalyst in Dropsuite shares.