Axis Real Estate Investment Trust (KLSE:AXREIT) is favoured by institutional owners who hold 52% of the company
editorial-team@simplywallst.com (Simply Wall St)
4 min read
Key Insights
Given the large stake in the stock by institutions, Axis Real Estate Investment Trust's stock price might be vulnerable to their trading decisions
51% of the business is held by the top 7 shareholders
Ownership research along with analyst forecasts data help provide a good understanding of opportunities in a stock
If you want to know who really controls Axis Real Estate Investment Trust (KLSE:AXREIT), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
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.
Let's take a closer look to see what the different types of shareholders can tell us about Axis Real Estate Investment Trust.
What Does The Institutional Ownership Tell Us About Axis Real Estate Investment 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.
Axis Real Estate Investment Trust already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Axis Real Estate Investment Trust, (below). Of course, keep in mind that there are other factors to consider, too.
KLSE:AXREIT Earnings and Revenue Growth October 17th 2023
Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Axis Real Estate Investment Trust is not owned by hedge funds. Our data shows that Employees Provident Fund of Malaysia is the largest shareholder with 16% of shares outstanding. Kumpulan Wang Persaraan is the second largest shareholder owning 10% of common stock, and Permodalan Nasional Berhad holds about 7.8% of the company stock.
We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Axis Real Estate Investment 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
We can report that insiders do own shares in Axis Real Estate Investment Trust. In their own names, insiders own RM293m worth of stock in the RM3.2b 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 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Axis Real Estate Investment Trust. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
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.
