In This Article:
Key Insights
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The considerable ownership by retail investors in Seven Hills Realty Trust indicates that they collectively have a greater say in management and business strategy
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43% of the business is held by the top 25 shareholders
Every investor in Seven Hills Realty Trust (NASDAQ:SEVN) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 55% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Institutions, on the other hand, account for 31% of the company's stockholders. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies.
In the chart below, we zoom in on the different ownership groups of Seven Hills Realty Trust.
Check out our latest analysis for Seven Hills Realty Trust
What Does The Institutional Ownership Tell Us About Seven Hills Realty 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.
As you can see, institutional investors have a fair amount of stake in Seven Hills Realty 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. 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 Seven Hills Realty Trust's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Seven Hills Realty Trust. Tremont Realty Management, LLC is currently the company's largest shareholder with 12% of shares outstanding. With 5.5% and 5.1% of the shares outstanding respectively, BlackRock, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders.
On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.
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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.