Individual investors invested in HomeCo Daily Needs REIT (ASX:HDN) copped the brunt of last week's AU$186m market cap decline

A look at the shareholders of HomeCo Daily Needs REIT (ASX:HDN) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual investors with 60% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week's 6.7% decline in share price, individual investors suffered the most losses.

Let's delve deeper into each type of owner of HomeCo Daily Needs REIT, beginning with the chart below.

View our latest analysis for HomeCo Daily Needs REIT

What Does The Institutional Ownership Tell Us About HomeCo Daily Needs REIT?

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.

HomeCo Daily Needs REIT already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of HomeCo Daily Needs REIT, (below). Of course, keep in mind that there are other factors to consider, too.

HomeCo Daily Needs REIT is not owned by hedge funds. Home Consortium Limited is currently the largest shareholder, with 13% of shares outstanding. With 10% and 6.4% of the shares outstanding respectively, Brett Blundy and The Vanguard Group, Inc. are the second and third largest shareholders. Furthermore, CEO Darren Holland is the owner of 0.6% of the company's shares.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of HomeCo Daily Needs REIT

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 a reasonable proportion of HomeCo Daily Needs REIT. It is very interesting to see that insiders have a meaningful AU$309m stake in this AU$2.6b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public -- including retail investors -- own 60% of HomeCo Daily Needs REIT. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Public Company Ownership

It appears to us that public companies own 13% of HomeCo Daily Needs REIT. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

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. To that end, you should learn about the 3 warning signs we've spotted with HomeCo Daily Needs REIT (including 1 which can't be ignored) .

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.

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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.