Both retail investors who control a good portion of Invesco Mortgage Capital Inc. (NYSE:IVR) along with institutions must be dismayed after last week's 9.4% decrease

Key Insights

• Invesco Mortgage Capital's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• 38% of the business is held by the top 25 shareholders
• Institutions own 42% of Invesco Mortgage Capital

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A look at the shareholders of Invesco Mortgage Capital Inc. (NYSE:IVR) can tell us which group is most powerful. The group holding the most number of shares in the company, around 58% to be precise, is retail investors. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While institutions who own 42% came under pressure after market cap dropped to US$490m last week,retail investors took the most losses.

Let's take a closer look to see what the different types of shareholders can tell us about Invesco Mortgage Capital.

See our latest analysis for Invesco Mortgage Capital

What Does The Institutional Ownership Tell Us About Invesco Mortgage Capital?

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 Invesco Mortgage Capital. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 Invesco Mortgage Capital's earnings history below. Of course, the future is what really matters.

Invesco Mortgage Capital is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 9.0% of shares outstanding. In comparison, the second and third largest shareholders hold about 5.2% and 3.7% of the stock.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Invesco Mortgage Capital

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 information suggests that Invesco Mortgage Capital Inc. insiders own under 1% of the company. It has a market capitalization of just US$490m, and the board has only US$1.4m worth of shares in their own names. We generally like to see a board more invested. However 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 58% stake in Invesco Mortgage Capital, suggesting it is a fairly popular stock. 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Invesco Mortgage Capital better, we need to consider many other factors. For example, we've discovered 3 warning signs for Invesco Mortgage Capital (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.