Is Allied Properties Real Estate Investment Trust (TSE:AP.UN) Popular Amongst Institutions?
Every investor in Allied Properties Real Estate Investment Trust (TSE:AP.UN) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see lower insider ownership in companies that were previously publicly owned.
Allied Properties Real Estate Investment Trust is a pretty big company. It has a market capitalization of CA$5.8b. Normally institutions would own a significant portion of a company this size. Taking a look at our data on the ownership groups (below), it seems that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about Allied Properties Real Estate Investment Trust.
Check out our latest analysis for Allied Properties Real Estate Investment Trust
What Does The Institutional Ownership Tell Us About Allied Properties Real Estate Investment Trust?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Allied Properties Real Estate Investment Trust does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Allied Properties Real Estate Investment Trust's earnings history below. Of course, the future is what really matters.
Allied Properties Real Estate Investment Trust is not owned by hedge funds. The company's largest shareholder is RBC Global Asset Management Inc., with ownership of 7.5%. For context, the second largest shareholder holds about 4.9% of the shares outstanding, followed by an ownership of 4.0% by the third-largest shareholder. In addition, we found that Michael Emory, the CEO has 0.9% of the shares allocated to their name.
A deeper look at our ownership data shows that the top 25 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Allied Properties Real Estate Investment Trust
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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.
I can report that insiders do own shares in Allied Properties Real Estate Investment Trust. This is a big company, so it is good to see this level of alignment. Insiders own CA$78m worth of shares (at current prices). Most would say this shows alignment of interests between shareholders and the board. Still, it might be worth checking if those insiders have been selling.
General Public Ownership
The general public holds a substantial 52% stake in Allied Properties Real Estate Investment Trust, suggesting it is a fairly popular stock. 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.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Allied Properties Real Estate Investment Trust better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with Allied Properties Real Estate Investment Trust (including 2 which are potentially serious) .
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.
This article by Simply Wall St is general in nature. 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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