Every investor in Dream Residential Real Estate Investment Trust (TSE:DRR.U) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion’s share in the company with 79% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While individual investors were the group that benefitted the most from last week’s US$10.0m market cap gain, institutions too had a 21% share in those profits.
Let’s take a closer look to see what the different types of shareholders can tell us about Dream Residential Real Estate Investment Trust.
What Does The Institutional Ownership Tell Us About Dream Residential Real Estate Investment Trust?
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.
As you can see, institutional investors have a fair amount of stake in Dream Residential Real Estate Investment Trust. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Dream Residential Real Estate Investment Trust’s earnings history below. Of course, the future is what really matters.
Dream Residential Real Estate Investment Trust is not owned by hedge funds. The company’s largest shareholder is EdgePoint Investment Group Inc., with ownership of 9.0%. Meanwhile, the second and third largest shareholders, hold 6.1% and 2.5%, of the shares outstanding, respectively.
A deeper look at our ownership data shows that the top 16 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.
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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Dream Residential Real Estate Investment Trust
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.
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.
Our information suggests that Dream Residential Real Estate Investment Trust insiders own under 1% of the company. It has a market capitalization of just US$184m, and the board has only US$1.1m worth of shares in their own names. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public — including retail investors — own 79% of Dream Residential Real Estate Investment Trust. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example – Dream Residential Real Estate Investment Trust has 3 warning signs we think you should be aware of.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.
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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.
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