A fantastic week for Grit Real Estate Income Group Limited’s (LON:GR1T) 45% institutional owners, one-year returns continue to impress

A look at the shareholders of Grit Real Estate Income Group Limited (LON:GR1T) can tell us which group is most powerful. With 45% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

And things are looking up for institutional investors after the company gained UK£24m in market cap last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 3.9%. Let’s take a closer look to see what the different types of shareholders can tell us about Grit Real Estate Income Group. View our latest analysis for Grit Real Estate Income Group

LSE:GR1T Ownership Breakdown February 2nd 2023

What Does The Institutional Ownership Tell Us About Grit Real Estate Income Group?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Grit Real Estate Income Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Grit Real Estate Income Group’s earnings history below. Of course, the future is what really matters.

LSE:GR1T Earnings and Revenue Growth February 2nd 2023

  We note that hedge funds don’t have a meaningful investment in Grit Real Estate Income Group. Looking at our data, we can see that the largest shareholder is Public Investment Corporation Limited with 18% of shares outstanding. With 7.3% and 6.9% of the shares outstanding respectively, M&G Investment Management Limited and Eskom Pension and Provident Fund are the second and third largest shareholders. In addition, we found that Bronwyn Knight, the CEO has 2.7% of the shares allocated to their name. We did some more digging and found that 7 of the top shareholders account for roughly 51% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Grit Real Estate Income Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. Shareholders would probably be interested to learn that insiders own shares in Grit Real Estate Income Group Limited. As individuals, the insiders collectively own UK£12m worth of the UK£158m company. This shows at least some alignment, but we usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 36% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Grit Real Estate Income Group. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 10%, of the Grit Real Estate Income Group stock. It’s hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 4 warning signs we’ve spotted with Grit Real Estate Income Group (including 2 which make us uncomfortable) . But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future. 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.

Publication: simplywall.st