The market capitalization of European Residential Real Estate Investment Trust (TSE:ERE.UN) fell C$43 million last week; individuals who hold 56% have been affected as well as institutions
Every investor in European Residential Real Estate Investment Trust (TSE:ERE.UN) should know the most powerful shareholder groups. We can see that individual investors hold the lion’s share of the company with 56% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
While the holdings of individual investors took a hit after prices fell 11% last week, institutions, with their 42% holdings, also suffered.
Let’s take a closer look at what different types of shareholders can tell us about European Residential Real Estate Investment Trust.
Check out our latest analysis for European Residential Real Estate Investment Trust
What does institutional ownership tell us about the European residential real estate investment trust?
Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that European Residential Real Estate Investment Trust has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. It is therefore worth checking out the earnings history of European Residential Real Estate Investment Trust below. Of course, the future is what really matters.
European Residential Real Estate Investment Trust is not owned by hedge funds. Our data shows that 1832 Asset Management LP is the largest shareholder with 15% of shares outstanding. Canadian Apartment Properties Real Estate Investment Trust is the second-largest shareholder, holding 11% of the common shares, and CI Global Asset Management owns approximately 7.8% of the company’s shares. Additionally, we found that Phillip Burns, the CEO, owns 1.0% of the shares awarded in his name.
A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. There is some analyst coverage of the stock, but it could still become better known over time.
Insider ownership of a European residential real estate investment fund
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders hold shares in European Residential Real Estate Investment Trust. As individuals, insiders collectively own C$18 million of the C$933 million company. This shows at least some alignment. You can click here to see if these insiders have been buying or selling.
General public property
The general public, who are usually retail investors, hold a substantial 56% stake in European Residential Real Estate Investment Trust, suggesting that it is quite a popular stock. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. For example, we have identified 4 warning signs for European Residential Real Estate Investment Trust (1 makes us a little uneasy) that you should be aware of.
At the end of the day the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.