abrdn Property Income Trust Limited (LON:API) is a favorite amongst institutional investors who own 52%
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Significantly high institutional ownership implies abrdn Property Income Trust's stock price is sensitive to their trading actions
The top 14 shareholders own 50% of the company
Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of abrdn Property Income Trust Limited (LON:API) can tell us which group is most powerful. The group holding the most number of shares in the company, around 52% to be precise, is institutions. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a good portion of institutional money invested in the company is usually a huge vote of confidence on its future.
In the chart below, we zoom in on the different ownership groups of abrdn Property Income Trust.
What Does The Institutional Ownership Tell Us About abrdn Property Income Trust?
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 abrdn Property Income Trust. 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. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of abrdn Property Income Trust, (below). Of course, keep in mind that there are other factors to consider, too.
LSE:API Earnings and Revenue Growth November 15th 2023
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. abrdn Property Income Trust is not owned by hedge funds. Hargreaves Lansdown Asset Management Ltd. is currently the largest shareholder, with 12% of shares outstanding. With 9.2% and 6.1% of the shares outstanding respectively, abrdn plc and A J Bell Holdings Limited, Asset Management Arm are the second and third largest shareholders.
After doing some more digging, we found that the top 14 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of abrdn Property Income Trust
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. 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.
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 abrdn Property Income Trust Limited insiders own under 1% of the company. It seems the board members have no more than UK£10.0k worth of shares in the UK£191m company. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 48% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
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.
