Yahoo Finance Positive week for Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) institutional investors who lost 34% over the past year
Key Insights
Given the large stake in the stock by institutions, Hannon Armstrong Sustainable Infrastructure Capital's stock price might be vulnerable to their trading decisions
50% of the business is held by the top 18 shareholders
A look at the shareholders of Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) can tell us which group is most powerful. With 85% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Last week's US$196m market cap gain would probably be appreciated by institutional investors, especially after a year of 34% losses.
Let's take a closer look to see what the different types of shareholders can tell us about Hannon Armstrong Sustainable Infrastructure Capital.
See our latest analysis for Hannon Armstrong Sustainable Infrastructure Capital
What Does The Institutional Ownership Tell Us About Hannon Armstrong Sustainable Infrastructure Capital?
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.
We can see that Hannon Armstrong Sustainable Infrastructure Capital does have institutional investors; and they hold a good portion of the company's stock. 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 Hannon Armstrong Sustainable Infrastructure Capital's historic earnings and revenue below, but keep in mind there's always more to the story.
Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hannon Armstrong Sustainable Infrastructure Capital is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Wellington Management Group LLP with 8.3% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.2% and 6.8% of the stock.
Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 18 shareholders, meaning that no single shareholder has a majority interest in the ownership.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Hannon Armstrong Sustainable Infrastructure Capital
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Shareholders would probably be interested to learn that insiders own shares in Hannon Armstrong Sustainable Infrastructure Capital, Inc.. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around US$55m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 13% stake in the company, and hence can't easily be ignored. 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:
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 4 warning signs for Hannon Armstrong Sustainable Infrastructure Capital you should be aware of, and 2 of them are concerning.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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