Yahoo Finance Could The Standard Life Investments Property Income Trust Limited (LON:SLI) Ownership Structure Tell Us Something Useful?
Every investor in Standard Life Investments Property Income Trust Limited (LON:SLI) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that have been privatized tend to have low insider ownership.
Standard Life Investments Property Income Trust is a smaller company with a market capitalization of UK£213m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about Standard Life Investments Property Income Trust.
See our latest analysis for Standard Life Investments Property Income Trust
What Does The Institutional Ownership Tell Us About Standard Life Investments Property Income Trust?
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 Standard Life Investments Property Income Trust. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Standard Life Investments Property Income Trust's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Standard Life Investments Property Income Trust. Brewin Dolphin Limited is currently the company's largest shareholder with 14% of shares outstanding. Mattioli Woods Plc, Asset Management Arm is the second largest shareholder owning 8.4% of common stock, and Heartwood Wealth Management, Asset Management Arm holds about 7.3% of the company stock.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Standard Life Investments Property Income Trust
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that Standard Life Investments Property Income Trust Limited insiders own under 1% of the company. It seems the board members have no more than UK£418k worth of shares in the UK£213m company. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, mostly retail investors, hold a substantial 55% stake in Standard Life Investments Property Income Trust, suggesting it is a fairly popular stock. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Standard Life Investments Property Income Trust you should be aware of, and 1 of them makes us a bit uncomfortable.
Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.
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.
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