Are Institutions Heavily Invested In Choice Properties Real Estate Investment Trust’s (TSE:CHP.UN) Shares?

Choice Properties Real Estate Investment Trust (TSE:CHP.UN)’s major shareholder groups have power over the company. Institutions often own shares in larger companies, and we expect insiders to own a sizeable percentage of the smaller ones. We also tend to see less insider ownership in companies that were previously publicly owned.

Choice Properties Real Estate Investment Trust has a market cap of CA$10 billion, so it’s too big to fly under the radar. We expect both institutions and individual investors to own part of the company. Our analysis of company ownership below shows that institutions own shares in the company. Let’s delve deeper into each type of owner to learn more about Choice Properties Real Estate Investment Trust.

Check out our latest analysis for Choice Properties Real Estate Investment Trust

TSX:CHP.UN ownership breakdown January 21, 2022

What Does Institutional Ownership Tell Us About Choice Properties Real Estate Investment Trust?

Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies that are included in major indices.

As you can see, institutional investors have a significant stake in Choice Properties Real Estate Investment Trust. This means that the analysts who work for these institutions have looked at the stock and like it. But just like everyone else, they can be wrong. When multiple institutions own a stock, there is always a risk that they will find themselves in a “crowded trade”. When such a trade goes awry, multiple parties can compete to sell shares quickly. This risk is higher in a company without a growth history. You can see Choice Properties Real Estate Investment Trust’s historical earnings and earnings below, but remember there’s still more to be told.

Profit and Revenue GrowthTSX:CHP.UN Earnings and Revenue Growth Jan 21, 2022

Hedge funds don’t have many holdings in Choice Properties Real Estate Investment Trust. Looking at our data, we can see that the largest shareholder is Wittington Investments Limited with 15% of the shares outstanding. RBC Global Asset Management Inc. is the second largest shareholder with 8.8% of the common stock and The Vanguard Group, Inc. owns approximately 3.3% of the company’s stock.

A closer look at our ownership data reveals that the 25 largest shareholders collectively hold less than half of the register, suggesting a large group of small shareholders with no single shareholder controlling.

Studying institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst sentiment. There’s a little analyst coverage of the stock, but not much. So there is room for more coverage.

Insider ownership of Choice Properties Real Estate Investment Trust

While the precise definition of an insider can be subjective, almost everyone considers a board member to be an insider. Management runs the business, but the CEO is accountable to the board even if he or she is a member.

In general, I think insider ownership is a good thing. In some cases, however, it becomes more difficult for other shareholders to hold the board accountable for decisions.

Our information indicates that Choice Properties Real Estate Investment Trust insiders own less than 1% of the company. However, it is possible that insiders could have an indirect interest through a more complex structure. Since it’s a large company, we’d only expect insiders to own a small percentage of it. But it’s worth noting that they own C$46 million worth of shares. It’s good to see board members own shares, but it might be worth checking to see if those insiders bought.

General Public Property

The general public, which tend to be individual investors, owns a sizable 53% stake in Choice Properties Real Estate Investment Trust, which suggests it’s a fairly popular stock. This level of ownership gives investors from the general public some power to influence key policy decisions such as board composition, executive compensation and dividend payout ratios.

Private company property

We can see that private companies own 15% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through an interest in a private company rather than in their own capacity as an individual. Although it is difficult to draw general conclusions, it is worth noting that this is an area for further research.

Next Steps:

I find it very interesting to see who exactly owns a company. But to really gain insight, we need to consider other information as well. For example, take risks – Choice Properties Real Estate Investment Trust has 5 warning signs (and 1, which is a bit awkward) that we think you should know about.

Eventually the future is the most important thing. You can access it for free Report on analysts’ forecasts for the company.

Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not tally with the annual report figures for the full year.

This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.