Institutions own 34% of CapitaLand India Trust (SGX:CY6U) shares but retail investors control 48% of the company

In This Article:

Key Insights

  • The considerable ownership by retail investors in CapitaLand India Trust indicates that they collectively have a greater say in management and business strategy

  • 50% of the business is held by the top 25 shareholders

  • Institutions own 34% of CapitaLand India Trust

Every investor in CapitaLand India Trust (SGX:CY6U) should be aware of the most powerful shareholder groups. With 48% 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).

And institutions on the other hand have a 34% ownership in the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

Let's delve deeper into each type of owner of CapitaLand India Trust, beginning with the chart below.

Check out our latest analysis for CapitaLand India Trust

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About CapitaLand India Trust?

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 have a fair amount of stake in CapitaLand India 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. 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 CapitaLand India Trust's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
earnings-and-revenue-growth

We note that hedge funds don't have a meaningful investment in CapitaLand India Trust. The company's largest shareholder is Bartley Investments Pte. Ltd., with ownership of 17%. Meanwhile, the second and third largest shareholders, hold 7.3% and 4.2%, of the shares outstanding, respectively.

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.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.