A look at the shareholders of Parkway Life Real Estate Investment Trust (SGX: C2PU) can tell us which group is more powerful. Institutions often own shares in more established companies, while it is not uncommon to see insiders owning a good number of smaller companies. Companies that were previously publicly owned tend to have less insider ownership.
With a market cap of S$2.9 billion, Parkway Life Real Estate Investment Trust is a decent size, so it’s probably on the radar of institutional investors. Looking at our ownership group data (below), it appears that institutions are visible on the share register. We can zoom in on the different ownership groups, to learn more about Parkway Life Real Estate Investment Trust.
Check out our latest analysis for Parkway Life Real Estate Investment Trust
What does institutional ownership tell us about Parkway Life 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 Parkway Life 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. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Parkway Life Real Estate Investment Trust’s historic earnings and revenue below, but keep in mind there’s always more to tell.
Parkway Life Real Estate Investment Trust is not owned by hedge funds. The company’s largest shareholder is Integrated Healthcare Holdings Limited with a 35% stake. Meanwhile, the second and third largest shareholders hold 2.3% and 2.0% of the outstanding shares respectively.
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 it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.
Insider Ownership of Parkway Life Real Estate Investment Trust
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our data suggests that insiders hold less than 1% of Parkway Life Real Estate Investment Trust in their own name. However, insiders may have an indirect interest through a more complex structure. It’s a big company, so even a small proportionate interest can create alignment between the board and shareholders. In this case, insiders hold S$5.2 million worth of shares. It’s always good to see at least some insider ownership, but it might be worth checking to see if those insiders have sold.
General public property
With a 36% stake, the general public, consisting primarily of individual investors, has some influence over Parkway Life Real Estate Investment Trust. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.
Private Company Ownership
Our data indicates that private companies hold 35% of the shares of society. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with Parkway Life Real Estate Investment Trust (at least 2 that cannot be ignored), and understanding them should be part of your investment process.
If you’re like me, you might want to ask yourself if this business will grow or shrink. Luckily, you can check out this free report showing analyst predictions for its future.
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.