Axis Real Estate Investment Trust (KLSE:AXREIT) is a favorite amongst institutional investors who own 65%
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Significantly high institutional ownership implies Axis Real Estate Investment Trust’s stock price is sensitive to their trading actions
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The top 6 shareholders own 54% of the company
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Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
A look at the shareholders of Axis Real Estate Investment Trust (KLSE:AXREIT) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are institutions with 65% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Because institutional owners have a huge pool of resources and liquidity, their investing decisions tend to carry a great deal of weight, especially with individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute.
In the chart below, we zoom in on the different ownership groups of Axis Real Estate Investment Trust.
See our latest analysis for Axis Real Estate Investment Trust
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.
We can see that Axis Real Estate Investment Trust does have institutional investors; and they hold a good portion of the company’s stock. 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. 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 Axis Real Estate Investment Trust’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don’t have many shares in Axis Real Estate Investment Trust. Looking at our data, we can see that the largest shareholder is Employees Provident Fund of Malaysia with 19% of shares outstanding. In comparison, the second and third largest shareholders hold about 8.4% and 8.1% of the stock.
