retail investors who own 57% along with institutions invested in Invesco Mortgage Capital Inc. (NYSE:IVR) saw increase in their holdings value last week

Key Insights

• Significant control over Invesco Mortgage Capital by retail investors implies that the general public has more power to influence management and governance-related decisions
• 33% of the business is held by the top 25 shareholders
• Institutional ownership in Invesco Mortgage Capital is 35%

A look at the shareholders of Invesco Mortgage Capital Inc. (NYSE:IVR) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Retail investors gained the most after market cap touched US$485m last week, while institutions who own 35% also benefitted.

Let's delve deeper into each type of owner of Invesco Mortgage Capital, beginning with the chart below.

View our latest analysis for Invesco Mortgage Capital

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

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.

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.

We note that hedge funds don't have a meaningful investment in Invesco Mortgage Capital. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 9.9% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 4.9% of common stock, and Geode Capital Management, LLC holds about 2.3% of the company 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.

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 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 most recent data indicates that insiders own less than 1% of Invesco Mortgage Capital Inc.. It has a market capitalization of just US$485m, and the board has only US$1.5m 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, mostly comprising of individual investors, collectively holds 57% of Invesco Mortgage Capital shares. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Invesco Mortgage Capital (1 is a bit unpleasant) that you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.