What type of shareholders make up the NewRiver REIT plc (LON:NRR) share register?

If you want to know who really controls NewRiver REIT plc (LON:NRR), you need to look at the composition of the share register. Institutions often own stakes in more established companies, while it is not uncommon for insiders to own some smaller companies. We also tend to see less insider ownership in companies that were previously publicly owned.

NewRiver REIT is not a big company by global standards. It has a market cap of £271 million, meaning it would not attract the attention of many institutional investors. A look at our data on ownership groups (below) shows that institutions own shares in the company. Let’s take a closer look at what the different types of shareholders can tell us about NewRiver REIT.

Check out our latest analysis for NewRiver REIT

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property breakdown

What Does Institutional Ownership Tell Us About the NewRiver REIT?

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

As you can see, institutional investors have a significant stake in NewRiver REIT. This means that the analysts who work for these institutes have looked at the stock and like it. But just like everyone else, they can be wrong. When multiple institutions own a stock, there is always a risk that they will find themselves in a “crowded trade”. When such a trade goes awry, multiple parties can compete to sell shares quickly. This risk is higher in a company without a growth history. You can see NewRiver REIT’s historical earnings and earnings below, but remember there’s still more to be told.

Profit and Revenue Growth

Profit and Revenue Growth

Investors should note that institutions actually own more than half of the company, so collectively they can wield significant power. We find that hedge funds have no meaningful investment in NewRiver REIT. Looking at our data, we can see that the largest shareholder is Integrated Financial Arrangements plc, Asset Management Arm, with 10% of the shares outstanding. Premier Fund Managers Limited and M&G Investment Management Limited are the second and third largest shareholders with 5.8% and 5.4% of the outstanding shares respectively.

A closer look at our ownership numbers suggests that the 13 largest shareholders together hold a 52% stake, meaning no single shareholder has the majority.

Studying institutional ownership is a good way to gauge and filter a stock’s expected performance. The same can be done by studying analyst sentiment. There are many analysts covering the stock, so it might be worth seeing what they’re forecasting as well.

Insider ownership of NewRiver REIT

The definition of corporate insider can be subjective and varies by jurisdiction. Our data reflects individual insiders and captures at least board members. Management ultimately reports to the board of directors. However, it is not uncommon for managers to be members of the executive board, especially if they are founders or CEOs.

Insider ownership is positive when it signals leadership thinks like the true owners of the company. However, a high proportion of insiders can give immense power to even a small group within the organization. This can sometimes be negative.

Our data suggests that insiders own less than 1% of NewRiver REIT plc in their own name. It appears the board holds around £602,000 worth of shares. This compares to a market capitalization of £271 million. Many tend to see a board with larger holdings. A good next step might be to take a look at this free roundup of insider buying and selling.

General Public Property

The general public — including retail investors — own a 15% stake in the company, so it can’t be ignored. While this ownership may not be sufficient to influence a policy decision in their favor, they can still collectively influence company policy.

Next Steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand NewRiver REIT, we need to consider many other factors. For example, we discovered 1 warning sign for NewRiver REIT you should know before you invest here.

Ultimately the future is the most important thing. You can access it free Report on analysts’ forecasts for the company.

Note: The figures in this article are calculated using data for the last twelve months, relating to the 12-month period ending on the last date of the month to which the financial statements are dated. This may not match the figures in the full year report.

Do you have any feedback about this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to the editorial team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

About Nina Snider

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