In This Article:
Key Insights
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Significant control over Chicago Atlantic Real Estate Finance by retail investors implies that the general public has more power to influence management and governance-related decisions
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The top 25 shareholders own 39% of the company
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14% of Chicago Atlantic Real Estate Finance is held by insiders
A look at the shareholders of Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) can tell us which group is most powerful. With 56% stake, retail investors possess the maximum shares in the company. 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 27% of the company's stockholders. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies.
In the chart below, we zoom in on the different ownership groups of Chicago Atlantic Real Estate Finance.
View our latest analysis for Chicago Atlantic Real Estate Finance
What Does The Institutional Ownership Tell Us About Chicago Atlantic Real Estate Finance?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
We can see that Chicago Atlantic Real Estate Finance does have institutional investors; and they hold a good portion of the company's stock. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Chicago Atlantic Real Estate Finance's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Chicago Atlantic Real Estate Finance. Looking at our data, we can see that the largest shareholder is Ray Thurston with 6.9% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.5% and 3.1%, of the shares outstanding, respectively. Additionally, the company's CEO Anthony Cappell directly holds 1.7% of the total shares outstanding.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.