Vital Healthcare Property Trust's (NZSE:VHP) largest shareholders are individual investors with 51% ownership, institutions own 49%

By
Simply Wall St
Published
May 09, 2022
NZSE:VHP
Source: Shutterstock

A look at the shareholders of Vital Healthcare Property Trust (NZSE:VHP) can tell us which group is most powerful. With 51% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Meanwhile, institutions make up 49% of the company’s shareholders. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's delve deeper into each type of owner of Vital Healthcare Property Trust, beginning with the chart below.

Check out our latest analysis for Vital Healthcare Property Trust

ownership-breakdown
NZSE:VHP Ownership Breakdown May 9th 2022

What Does The Institutional Ownership Tell Us About Vital Healthcare Property Trust?

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.

As you can see, institutional investors have a fair amount of stake in Vital Healthcare Property Trust. 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 Vital Healthcare Property Trust, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NZSE:VHP Earnings and Revenue Growth May 9th 2022

Hedge funds don't have many shares in Vital Healthcare Property Trust. Our data shows that NorthWest Healthcare Properties Real Estate Investment Trust is the largest shareholder with 26% of shares outstanding. With 6.6% and 4.7% of the shares outstanding respectively, Forsyth Barr Investment Management Limited and Accident Compensation Corporation, Asset Management Arm are the second and third largest shareholders.

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.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Vital Healthcare Property Trust

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.

Our data suggests that insiders own under 1% of Vital Healthcare Property Trust in their own names. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around NZ$2.5m worth of shares (at current prices). It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a substantial 51% stake in Vital Healthcare Property Trust, suggesting it is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Vital Healthcare Property Trust better, we need to consider many other factors. Be aware that Vital Healthcare Property Trust is showing 5 warning signs in our investment analysis , and 2 of those 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.