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Do Institutions Own Shares In BMO Real Estate Investments Limited (LON:BREI)?

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The big shareholder groups in BMO Real Estate Investments Limited (LON:BREI) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

BMO Real Estate Investments is not a large company by global standards. It has a market capitalization of UK£193m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about BREI.

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Check out our latest analysis for BMO Real Estate Investments

LSE:BREI Ownership Summary, June 23rd 2019
LSE:BREI Ownership Summary, June 23rd 2019

What Does The Institutional Ownership Tell Us About BMO Real Estate Investments?

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.

As you can see, institutional investors own 29% of BMO Real Estate Investments. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 BMO Real Estate Investments, (below). Of course, keep in mind that there are other factors to consider, too.

LSE:BREI Income Statement, June 23rd 2019
LSE:BREI Income Statement, June 23rd 2019

Hedge funds don't have many shares in BMO Real Estate Investments. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of BMO Real Estate Investments

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of BMO Real Estate Investments Limited. It appears that the board holds about UK£295k worth of stock. This compares to a market capitalization of UK£193m. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- mostly retail investors -- own 71% of BMO Real Estate Investments . This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.