Do Insiders Own Lots Of Shares In Axis Real Estate Investment Trust (KLSE:AXREIT)?

A look at the shareholders of Axis Real Estate Investment Trust (KLSE: AXREIT) can tell us which group is the most powerful. Large companies usually have institutions as shareholders, and we usually see insiders who own stakes in smaller companies. I really like to see at least a little bit of inside ownership. As Charlie Munger said, “Show me the incentive and I’ll show you the result.

Axis Real Estate Investment Trust is a smaller company with a market capitalization of RM 2.8 billion. As such, it may still fly under the radar of many institutional investors. Our analysis of ownership of the company below shows that institutions are identifiable in the share register. Let’s dig deeper into each type of owner to learn more about the Axis Real Estate Investment Trust.

Check out our latest analysis for Axis Real Estate Investment Trust

KLSE: Breakdown of AXREIT owners on March 18, 2021

What does institutional ownership tell us about Axis Real Estate Investment Trust?

Institutional investors typically compare their own returns to the returns of a widely tracked index. As a result, they generally consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a reasonable stake in Axis Real Estate Investment Trust. This can indicate that the company has some level of credibility in the mutual trust. However, it is best not to rely on the purported validation that comes with institutional investors. Sometimes they get it wrong too. If several institutions change their view of a share at the same time, the share price can fall quickly. It is therefore worth taking a look at the profit history of the Axis Real Estate Investment Trust. Of course, the future is what really matters.

KLSE: AXREIT earnings and sales growth March 18, 2021

Investors should note that institutions actually own more than half of the company so they can collectively wield significant power. We discover that hedge funds do not make a sensible investment in Axis Real Estate Investment Trust. Our data shows that the Employees Provident Fund of Malaysia is the largest shareholder with 15% of the shares issued. The second and third largest shareholder holds 12% and 12% of the issued shares, respectively.

Our research has also shown that around 51% of the company is controlled by the top 5 shareholders, suggesting that these owners have a significant impact on the business.

Investigating institutional ownership is a great way to measure and filter the expected performance of a stock. The same can be achieved by examining the analysts’ feelings. There are many analysts out there looking into the stock. So it might be worthwhile to see what they’re predicting as well.

Axis Real Estate Investment Trust insider owned

The definition of an insider can vary slightly between countries, but the board members always count. The top management runs the business, but the CEO responds to the board even if he’s a member.

Inside ownership is positive when it signals that leadership thinks like the real owners of the company. However, high inside ownership can also give immense power to a small group within the company. This can be negative under certain circumstances.

Our latest data shows that insiders own a fair share of the Axis Real Estate Investment Trust. It has a market capitalization of only RM 2.8 billion, and insiders have stocks worth RM 304 million in their own name. This could suggest that the founders still own a lot of stocks. You can click here to see if they bought or sold.

General public property

With a share of 15%, the general public has some influence over the Axis Real Estate Investment Trust. While this size of property is substantial, it may not be enough to change company policy if the decision does not coincide with other major shareholders.

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. Like risks, for example. Every company has them and we discovered them 2 warning signs for Axis Real Estate Investment Trust (1 of which is significant!) that you should know about.

If you’re like me, you might want to think about whether this company is going to grow or shrink. Fortunately, you can check out this free report which has analyst forecast for the future.

NB: The figures in this article are calculated using data from the last twelve months, which refers to the twelve month period ending on the last date of the month in which the financial statements are dated. This may not match the figures in the annual report for the full year.

Funded
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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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