All investors in Dream Residential Real Estate Investment Trust (TSE:DRR.U) should be aware of the most powerful group of shareholders. We can see that a private investor owns most of the company with his 79% ownership. In other words, the group faces the greatest upside potential (or downside risk).
Retail investors were the group that benefited most from last week’s US$10 million rise in market capitalization, although institutional investors also accounted for 21% of the gains.
Let’s take a closer look at what different types of shareholders tell us about Dream Residential Real Estate Investment Trust.
See the latest analysis from Dream Residential Real Estate Investment Trust
What Can Institutional Ownership Tell You About Your Dream Residential Real Estate Investment Trust?
Many financial institutions measure their performance against indices that approximate local markets. As such, they typically pay more attention to companies included in major indices.
As you can see, Dream Residential Real Estate Investment Trust has a significant stake held by institutional investors. This may indicate that the company has some credibility in the investment community. However, caution should be exercised in relying on the validation that institutional investors assume. They get it wrong sometimes too. If multiple institutions change their views on a stock at the same time, the stock price can fall rapidly. Therefore, it is worth taking a look at the earnings history of Dream Residential Real Estate Investment Trust below. Of course, the future really matters.
Dream Residential Real Estate Investment Trust is not owned by a hedge fund. The company’s largest shareholder is his EdgePoint Investment Group Inc., which he owns 9.0%. Meanwhile, the second and third largest shareholders hold 6.1% of the outstanding shares and his 2.5%, respectively.
A closer look at the ownership data reveals that the top 16 shareholders collectively own less than half of the register. This suggests a large group of small owners where one shareholder does not have a majority.
It makes sense to study institutional investor data for companies, but it also makes sense to study analyst sentiment to get an idea of where the wind is heading. There are quite a few analysts who cover stocks, so it may be useful to know their collective views on the future.
Insider Ownership of a Dream Residential Real Estate Investment Trust
The definition of an insider can be subjective and varies by jurisdiction. Our data reflects individual insiders, or at least board members. The company’s management runs the business, but the CEO answers the board even though he is a member of the board.
Most people view insider ownership positively because it can indicate that the board works well with other shareholders. However, in some cases, this group may be overly privileged.
According to our information, Dream Residential Real Estate Investment Trust insiders own less than 1% of the company. With a market capitalization of just $184 million, the board only owns $1.1 million of stock in its own name. We generally want boards to invest more. However, it might be worth checking to see if those insiders are buying.
The public, including private investors, owns 79% of Dream Residential Real Estate Investment Trust. This amount of ownership allows individual investors to collectively play a role in decisions that affect shareholder interests, such as dividend policy and board appointments. We can also exercise the power to vote on acquisitions and mergers that may not improve profitability.
It’s well worth considering the different groups that own companies, but there are other factors that are even more important.Taking risk as an example, Dream Residential Real Estate Investment Trust three warning signs I think you should know.
If you’re like me, think about whether this company will grow or shrink. Luckily, you can check out this free report that shows analysts’ predictions for the future.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
Do you have feedback on this article? What interests you? contact directly with us. Or send an email to our editorial team (at) Simplywallst.com.
This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …
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