Yahoo Finance While institutions own 47% of Balanced Commercial Property Trust Ltd (LON:BCPT), individual investors are its largest shareholders with 53% ownership
Key Insights
The considerable ownership by individual investors in Balanced Commercial Property Trust indicates that they collectively have a greater say in management and business strategy
The top 25 shareholders own 46% of the company
Institutional ownership in Balanced Commercial Property Trust is 47%
Every investor in Balanced Commercial Property Trust Ltd (LON:BCPT) should be aware of the most powerful shareholder groups. With 53% stake, individual investors 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).
And institutions on the other hand have a 47% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.
In the chart below, we zoom in on the different ownership groups of Balanced Commercial Property Trust.
Check out our latest analysis for Balanced Commercial Property Trust
What Does The Institutional Ownership Tell Us About Balanced Commercial Property Trust?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Balanced Commercial Property Trust already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Balanced Commercial Property Trust's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Balanced Commercial Property Trust. Looking at our data, we can see that the largest shareholder is Aviva Investors Global Services Limited with 23% of shares outstanding. With 5.8% and 5.5% of the shares outstanding respectively, BlackRock, Inc. and Investec Wealth & Investment Limited are the second and third largest shareholders.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Balanced Commercial Property Trust
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.
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.
Our data suggests that insiders own under 1% of Balanced Commercial Property Trust Ltd in their own names. It appears that the board holds about UK£267k worth of stock. This compares to a market capitalization of UK£561m. We generally like to see a board more invested. However it might be worth checking if those insiders have been buying.
General Public Ownership
The general public -- including retail investors -- own 53% of Balanced Commercial Property Trust. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.
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. Be aware that Balanced Commercial Property Trust is showing 1 warning sign in our investment analysis , you should know about...
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
