Yahoo Finance Should You Be Concerned About Leasinvest Real Estate SCA’s (EBR:LEAS) Investors?
I am going to take a deep dive into Leasinvest Real Estate SCA’s (ENXTBR:LEAS) most recent ownership structure, not a frequent subject of discussion among individual investors. The impact of a company’s ownership structure affects both its short- and long-term performance. Since the effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company’s corporate governance and accountability of shareholders, investors should take a closer look at LEAS’s shareholder registry.
Check out our latest analysis for Leasinvest Real Estate
Institutional Ownership
Institutions account for 30.88% of LEAS’s outstanding shares, a significant enough holding to move stock prices if they start buying and selling in large quantities, especially when there are relatively small amounts of shares available on the market to trade. Although LEAS has a high institutional ownership, such stock moves, in the short-term, are more commonly linked to a particular type of active institutional investors – hedge funds. In the case of LEAS, investors need not worry about such volatility considering active hedge funds don’t have a significant stake. However, we should dig deeper into LEAS’s ownership structure and find out how other key ownership classes can affect its investment profile.
General Public Ownership
A substantial ownership of 33.13% in LEAS is held by the general public. With this size of ownership, retail investors can collectively play a role in major company policies that affect shareholders returns, including executive remuneration and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.
Private Company Ownership
Another group of owners that a potential investor in LEAS should consider are private companies, with a stake of 5.99%. While they invest more often due to strategic interests, an investment can also be driven by capital gains through share price appreciation. An ownership of this size indicates a strong financial backing and has the potential to influence LEAS’s business strategy. Thus, investors should dig deeper into LEAS’s business relations with these companies and how it can affect shareholder returns in the long-term.
Next Steps:
LEAS’s considerably high level of institutional ownership calls for further analysis into its margin of safety. This is to avoid getting trapped in a sustained sell-off that is often observed in stocks with this level of institutional participation. However, ownership structure should not be the only focus of your research when constructing an investment thesis around LEAS. Rather, you should be looking at fundamental drivers such as the intrinsic valuation, which is a key driver of Leasinvest Real Estate’s share price. I highly recommend you to complete your research by taking a look at the following:
Future Outlook: What are well-informed industry analysts predicting for LEAS’s future growth? Take a look at our free research report of analyst consensus for LEAS’s outlook.
Past Track Record: Has LEAS been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of LEAS’s historicals for more clarity.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
