Both individual investors who control a good portion of Grit Real Estate Income Group Limited (LON:GR1T) along with institutions must be dismayed after last week's 31% decrease

Key Insights

• The considerable ownership by individual investors in Grit Real Estate Income Group indicates that they collectively have a greater say in management and business strategy
• 53% of the business is held by the top 7 shareholders
• Institutions own 27% of Grit Real Estate Income Group

Every investor in Grit Real Estate Income Group Limited (LON:GR1T) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 38% to be precise, is individual investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Following a 31% decrease in the stock price last week, individual investors suffered the most losses, but institutions who own 27% stock also took a hit.

In the chart below, we zoom in on the different ownership groups of Grit Real Estate Income Group.

See our latest analysis for Grit Real Estate Income Group

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

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.

We can see that Grit Real Estate Income Group does have institutional investors; and they hold a good portion of the company's stock. 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. 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.

Grit Real Estate Income Group is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Public Investment Corporation Limited with 22% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 7.3% and 6.9%, of the shares outstanding, respectively. Additionally, the company's CEO Bronwyn Knight directly holds 2.7% of the total shares outstanding.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Grit Real Estate Income Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can report that insiders do own shares in Grit Real Estate Income Group Limited. It has a market capitalization of just UK£108m, and insiders have UK£7.7m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board, though we generally prefer to see bigger insider holdings. But it might be worth checking if those insiders have been selling.

General Public Ownership

With a 38% 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 5.5%, 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Grit Real Estate Income Group better, we need to consider many other factors. For instance, we've identified 5 warning signs for Grit Real Estate Income Group (1 doesn't sit too well with us) that you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.