What type of shareholders hold the majority of shares in Embassy Office Parks REIT (NSE: EMBASSY)?
If you want to know who actually controls Embassy Office Parks REIT (NSE: EMBASSY), you’ll need to look at the composition of its share register. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. Companies that have been privatized tend to have low insider ownership.
Embassy Office Parks REIT is a fairly large company. It has a market capitalization of ₹348b. Normally, institutions own a significant share of a business of this size. Our analysis of societal ownership below shows that institutions own shares in society. Let’s dig deeper into each type of owner to learn more about Embassy Office Parks REIT.
Check out our latest analysis for Embassy Office Parks REIT
What does institutional ownership tell us about Embassy Office Parks REIT?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
As you can see, institutional investors own a sizeable portion of Embassy Office Parks REIT. This may indicate that the company has some degree of credibility in the investment community. However, it is better to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see Embassy Office Parks REIT’s historical earnings and revenue below, but keep in mind there’s always more to tell.
Embassy Office Parks REIT is not owned by hedge funds. The company’s largest shareholder is Blackstone Inc., with a 20% stake. With respectively 15% and 12% of the outstanding shares, Capital Research and Management Company and Embassy Property Developments Private Limited are the second and third shareholders.
Our research also shed light on the fact that approximately 50% of the company is controlled by the 4 major shareholders, suggesting that these owners wield significant influence over the company.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it can be useful to know their overall view on the future.
Insider Ownership of Embassy Office Parks REIT
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.
Shareholders would likely be interested to learn that insiders hold shares of Embassy Office Parks REIT. It’s a pretty big company, so it’s generally a positive to see a potentially meaningful alignment. In this case, they own around ₹11 billion worth of shares (at current prices). If you want to explore the issue of insider alignment, you can click here to see if insiders have been buying or selling.
General public property
The general public, including retail investors, owns 30% of the company’s capital and therefore cannot be easily ignored. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private equity ownership
The private equity firms hold a 20% stake in Embassy Office Parks REIT. This suggests that they can influence key policy decisions. Some investors might be encouraged by this, as private equity is sometimes able to encourage strategies that help the market see the value of the company. Alternatively, these holders could exit the investment after making it public.
Private Company Ownership
Our data indicates that private companies own 15% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. Be aware that Embassy Office Parks REIT displays 3 warning signs in our investment analysis and 1 of them is potentially serious…
If you prefer to find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.