Individual investors among Suntec Real Estate Investment Trust's (SGX:T82U) largest stockholders and were hit after last week's 3.3% price drop

Key Insights

• The considerable ownership by individual investors in Suntec Real Estate Investment Trust indicates that they collectively have a greater say in management and business strategy
• 50% of the business is held by the top 8 shareholders
• 33% of Suntec Real Estate Investment Trust is held by insiders

Every investor in Suntec Real Estate Investment Trust (SGX:T82U) should be aware of the most powerful shareholder groups. With 42% stake, individual investors possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 3.3% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 33% stock also took a hit.

Let's delve deeper into each type of owner of Suntec Real Estate Investment Trust, beginning with the chart below.

See our latest analysis for Suntec Real Estate Investment Trust

What Does The Institutional Ownership Tell Us About Suntec Real Estate Investment Trust?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

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

Suntec Real Estate Investment Trust is not owned by hedge funds. Yigang Tang is currently the largest shareholder, with 15% of shares outstanding. With 10% and 8.0% of the shares outstanding respectively, ARA Asset Management Limited and Chen Huaidan are the second and third largest shareholders.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Suntec Real Estate Investment 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.

It seems insiders own a significant proportion of Suntec Real Estate Investment Trust. Insiders own S$1.1b worth of shares in the S$3.5b company. That's quite meaningful. Most would say this shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 42% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Suntec Real Estate Investment Trust (of which 1 doesn't sit too well with us!) you should know about.

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.