U.S. markets closed
  • S&P 500

    3,236.92
    -78.65 (-2.37%)
     
  • Dow 30

    26,763.13
    -525.05 (-1.92%)
     
  • Nasdaq

    10,632.99
    -330.65 (-3.02%)
     
  • Russell 2000

    1,451.46
    -45.50 (-3.04%)
     
  • Crude Oil

    39.32
    -0.61 (-1.53%)
     
  • Gold

    1,857.50
    -10.90 (-0.58%)
     
  • Silver

    22.12
    -0.98 (-4.26%)
     
  • EUR/USD

    1.1659
    -0.0003 (-0.02%)
     
  • 10-Yr Bond

    0.6760
    +0.0120 (+1.81%)
     
  • GBP/USD

    1.2714
    -0.0012 (-0.09%)
     
  • USD/JPY

    105.3420
    +0.0100 (+0.01%)
     
  • BTC-USD

    10,220.91
    -320.85 (-3.04%)
     
  • CMC Crypto 200

    207.71
    -6.26 (-2.92%)
     
  • FTSE 100

    5,899.26
    +69.80 (+1.20%)
     
  • Nikkei 225

    23,346.49
    -13.81 (-0.06%)
     

Is LTC Properties, Inc. (NYSE:LTC) Popular Amongst Institutions?

Simply Wall St

If you want to know who really controls LTC Properties, Inc. (NYSE:LTC), then you'll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

LTC Properties has a market capitalization of US$1.5b, so we would expect some institutional investors to have noticed the stock. In the chart below, we can see that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about LTC Properties.

Check out our latest analysis for LTC Properties

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About LTC Properties?

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 LTC Properties. 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. 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 LTC Properties, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. We note that hedge funds don't have a meaningful investment in LTC Properties. BlackRock, Inc. is currently the company's largest shareholder with 18% of shares outstanding. With 16% and 6.7% of the shares outstanding respectively, The Vanguard Group, Inc. and State Street Global Advisors, Inc. are the second and third largest shareholders. Additionally, the company's CEO Wendy Simpson directly holds 0.0090791 of the total shares outstanding.

We also observed that the top 8 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

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. 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 LTC Properties

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own some shares in LTC Properties, Inc.. The insiders have a meaningful stake worth US$28m. Most would see this as a real positive. 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 20% stake in LTC. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand LTC Properties better, we need to consider many other factors. For instance, we've identified 3 warning signs for LTC Properties (2 make us uncomfortable) that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.