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Schroder European Real Estate Investment Trust Plc (LON:SERE) is largely controlled by


Key Insights

  • Significantly high institutional ownership implies Schroder European Real Estate Investment Trust’s stock price is sensitive to their trading actions

  • The top 7 shareholders own 54% of the company

  • Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

A look at the shareholders of Schroder European Real Estate Investment Trust Plc (LON:SERE) can tell us which group is most powerful. The group holding the most number of shares in the company, around 82% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.

Let’s delve deeper into each type of owner of Schroder European Real Estate Investment Trust, beginning with the chart below.

View our latest analysis for Schroder European Real Estate Investment Trust

ownership-breakdown

ownership-breakdown

What Does The Institutional Ownership Tell Us About Schroder European Real Estate Investment 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.

Schroder European Real Estate Investment Trust already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Schroder European Real Estate Investment Trust’s earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth

earnings-and-revenue-growth

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Schroder European Real Estate Investment Trust is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Brewin Dolphin Wealth Management Limited with 16% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.3% and 6.9%, of the shares outstanding, respectively.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be achieved by studying analyst sentiments. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Schroder European Real Estate Investment Trust

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Schroder European Real Estate Investment Trust Plc. It has a market capitalization of just UK£90m, and the board has only UK£44k worth of shares in their own names. 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 11% stake in the company, and hence can’t easily be ignored. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

Public companies currently own 6.9% of Schroder European Real Estate Investment Trust stock. We can’t be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

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. Case in point: We’ve spotted 2 warning signs for Schroder European Real Estate Investment Trust you should be aware of, and 1 of them is concerning.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.

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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.



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