【guru gossip learning to be fearless】What Kind Of Investor Owns Most Of Morguard Real Estate Investment Trust (TSE:MRT.UN)?

Theguru gossip learning to be fearless big shareholder groups in Morguard Real Estate Investment Trust (

TSE:MRT.UN

) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Companies that used to be publicly owned tend to have lower insider ownership.

Morguard Real Estate Investment Trust is a smaller company with a market capitalization of CA$679m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about MRT.UN.

See our latest analysis for Morguard Real Estate Investment Trust

TSX:MRT.UN Ownership Summary January 2nd 19

What Does The Institutional Ownership Tell Us About Morguard 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 own 6.1% of Morguard Real Estate Investment Trust. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Morguard Real Estate Investment Trust’s historic earnings and revenue, below, but keep in mind there’s always more to the story.

TSX:MRT.UN Income Statement Export January 2nd 19

We note that hedge funds don’t have a meaningful investment in Morguard Real Estate Investment Trust. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Morguard Real Estate Investment Trust

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Story continues

Shareholders would probably be interested to learn that insiders own shares in Morguard Real Estate Investment Trust. In their own names, insiders own CA$15m worth of stock in the CA$679m company. This shows at least some alignment. You can

click here to see if those insiders have been buying or selling.

General Public Ownership

With a 34% ownership, the general public have some degree of sway over MRT.UN. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

Our data indicates that Private Companies hold 58%, of the company’s shares. 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:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I like to dive deeper

into how a company has performed in the past. You can find

historic revenue and earnings in this

detailed graph

.

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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at

[email protected]

.

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