Here’s What Ares Commercial Real Estate Corporation’s (NYSE:ACRE) Shareholder Ownership Structure Looks Like
Every investor in Ares Commercial Real Estate Corporation (NYSE: ACRE) should know the most powerful groups of shareholders. Institutions often own shares in more established companies, while it is not uncommon for insiders to own quite a bit of smaller companies. Privatized companies tend to have low levels of inside ownership.
Ares Commercial Real Estate is a smaller company with a market capitalization of $ 560 million. As such, it may still fly under the radar of many institutional investors. In the following chart we can see that institutional investors have bought into the company. Let’s dig deeper into each type of owner to learn more about Ares Commercial Real Estate.
Check out our latest analysis for Ares Commercial Real Estate
NYSE: ACRE Ownership Breakdown April 4, 2021
What does institutional ownership tell us about Ares Commercial Real Estate?
Many institutions measure their performance against an index that approximates the local market. As a result, they tend to pay more attention to companies included in major indices.
Ares Commercial Real Estate already has institutes in the share register. Indeed, they have a respectable stake in the company. This suggests some credibility with professional investors. But we cannot rely on this fact alone, as institutions sometimes make bad investments, as everyone does. If several institutions change their view of a share at the same time, the share price can fall quickly. It is therefore worth looking at Ares Commercial Real Estate’s profit history below. Of course, the future is what really matters.
NYSE: ACRE earnings and revenue growth April 4, 2021
Investors should note that institutions actually own more than half of the company so they can collectively wield significant power. Ares Commercial Real Estate is not a hedge fund. BlackRock, Inc. is currently the company’s largest shareholder with 8.0% of the issued shares. The second and third largest shareholders are Delphi Financial Group, Inc., Asset Management Arm and The Vanguard Group, Inc., with an equity stake equal to their name of 3.8%.
When examining our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, which means that no single person has a controlling stake.
While it makes sense to examine institutional ownership data for a company, it also makes sense to examine analysts’ views to know which way the wind is blowing. There are a fair number of analysts studying the stock. Therefore, it can be helpful to determine your overall view for the future.
Ares Commercial Real Estate insider ownership
The definition of an insider can vary slightly between different countries, but the members of the board of directors always count. Management’s response to the board of directors and the board of directors should represent the interests of the shareholders. In particular, top managers are sometimes on the board themselves.
Most consider insider ownership to be a positive as it can indicate that the board of directors is well aligned with other shareholders. In some cases, however, too much power is centered on this group.
Shareholders would likely be interested to know that Insiders own interests in Ares Commercial Real Estate Corporation. It has a market capitalization of just $ 560 million, and insiders have $ 22 million worth of shares in its own name. It’s good to see some investments from insiders, but it might be worth checking out if those insiders have bought.
General public property
With a 44% share, the general public has some influence on Ares Commercial Real Estate. While this size of property may not be sufficient to sway a political decision in their favor, they can still have a collective sway over company policies.
It is always worth thinking about the different groups that own shares in a company. However, in order to better understand Ares Commercial Real Estate we need to consider many other factors. Note that Ares is showing Commercial Real Estate 3 warning signs in our investment analysis and 2 of them are a bit uncomfortable …
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.
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