If you want to know who actually controls Sunlight Real Estate Investment Trust (HKG:435), then you’ll need to look at the composition of its share register. The group with the largest number of shares in the company, around 41% to be precise, are private companies. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
And after the 11% drop in the share price last week, private companies suffered the most losses.
Let’s dive deeper into each Sunlight Real Estate Investment Trust owner type, starting with the table below.
Check out our latest analysis for Sunlight Real Estate Investment Trust
What does institutional ownership tell us about Sunlight Real Estate Investment Trust?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
Sunlight Real Estate Investment Trust already has institutions on the share register. Indeed, they hold a respectable stake in the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking Sunlight Real Estate Investment Trust’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Sunlight Real Estate Investment Trust is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Lee Financial (Cayman) Limited with 22% of the shares outstanding. Meanwhile, the second and third largest shareholders hold 19% and 17% of the outstanding shares respectively.
After digging a little deeper, we found that the top 3 shareholders collectively control more than half of the company’s stock, implying that they have considerable power to influence company decisions.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There is some analyst coverage of the stock, but it could still become better known over time.
Insider Ownership of Sunlight Real Estate Investment Trust
The definition of an insider may differ slightly from country to country, but board members still matter. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our information suggests Sunlight Real Estate Investment Trust insiders own less than 1% of the company. We note, however, that insiders may have an indirect interest through a private company or other corporate structure. Board members appear to own no more than HK$11 million in shares in the HK$5.4 billion company. Many tend to prefer to see a board with larger holdings. A good next step might be to take a look at this free summary of insider buying and selling.
General public property
The general public, who are generally individual investors, hold a 31% stake in Sunlight Real Estate Investment Trust. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
Private Company Ownership
Our data indicates that private companies hold 41% of the shares of society. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
While it is worth considering the different groups that own a business, there are other, even more important factors. Consider the risks, for example. Every business has them, and we’ve spotted 1 warning sign for Sunlight Real Estate Investment Trust you should know.
If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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