Braemar Plc (LON:BMS) is definitely on the radar of institutional investors who own 42% of the company

In This Article:

Key Insights

  • Given the large stake in the stock by institutions, Braemar's stock price might be vulnerable to their trading decisions

  • A total of 23 investors have a majority stake in the company with 50% ownership

  • Using data from analyst forecasts alongside ownership research, one can better assess the future performance of a company

To get a sense of who is truly in control of Braemar Plc (LON:BMS), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 42% 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. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's take a closer look to see what the different types of shareholders can tell us about Braemar.

View our latest analysis for Braemar

ownership-breakdown
LSE:BMS Ownership Breakdown June 16th 2024

What Does The Institutional Ownership Tell Us About Braemar?

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 Braemar. 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. 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 Braemar, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
LSE:BMS Earnings and Revenue Growth June 16th 2024

Braemar is not owned by hedge funds. Our data shows that Braemar Shipping Services Plc, ESOP is the largest shareholder with 7.7% of shares outstanding. For context, the second largest shareholder holds about 5.2% of the shares outstanding, followed by an ownership of 4.4% by the third-largest shareholder. Additionally, the company's CEO James Christopher Gundy directly holds 2.5% of the total shares outstanding.

Looking at the shareholder registry, we can see that 50% of the ownership is controlled by the top 23 shareholders, meaning that no single shareholder has a majority interest in the ownership.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.