Individual investors are Suntec Real Estate Investment Trust's (SGX:T82U) biggest owners and were hit after market cap dropped S$116m
Key Insights
Significant control over Suntec Real Estate Investment Trust by individual investors implies that the general public has more power to influence management and governance-related decisions
50% of the business is held by the top 7 shareholders
Insider ownership in Suntec Real Estate Investment Trust is 33%
Every investor in Suntec Real Estate Investment Trust (SGX:T82U) should be aware of the most powerful shareholder groups. We can see that individual investors own the lion's share in the company with 40% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
While the holdings of individual investors took a hit after last week’s 3.4% price drop, insiders with their 33% also suffered.
In the chart below, we zoom in on the different ownership groups of Suntec Real Estate Investment Trust.
View our latest analysis for Suntec Real Estate Investment Trust
What Does The Institutional Ownership Tell Us About Suntec 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.
As you can see, institutional investors have a fair amount of stake in Suntec 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Suntec Real Estate Investment Trust, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Suntec Real Estate Investment Trust. Looking at our data, we can see that the largest shareholder is Yigang Tang with 15% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.7% and 8.0% of the stock.
We did some more digging and found that 7 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Suntec 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. 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.
Our most recent data indicates that insiders own a reasonable proportion of Suntec Real Estate Investment Trust. It has a market capitalization of just S$3.3b, and insiders have S$1.1b worth of shares in their own names. That's quite significant. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.
General Public Ownership
The general public, who are usually individual investors, hold a 40% stake in Suntec Real Estate Investment Trust. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with Suntec Real Estate Investment Trust (at least 2 which are potentially serious) , and understanding them should be part of your investment process.
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.
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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.
