could-the-w-p-carey-inc.-(nyse:wpc)-ownership-structure-tell-us-something-useful?

Could The W. P. Carey Inc. (NYSE:WPC) Ownership Structure Tell Us Something Useful?

NYSE:WPC) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.” data-reactid=”28″ type=”text”>Every investor in W. P. Carey Inc. (NYSE:WPC) should be aware of the most powerful shareholder groups. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

W. P. Carey has a market capitalization of US$12b, so it’s too big to fly under the radar. We’d expect to see both institutions and retail investors owning a portion of the company. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about W. P. Carey.

Check out our latest analysis for W. P. Carey ” data-reactid=”30″ type=”text”> Check out our latest analysis for W. P. Carey

ownership-breakdown

What Does The Institutional Ownership Tell Us About W. P. Carey?

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.

W. P. Carey already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 W. P. Carey’s historic earnings and revenue below, but keep in mind there’s always more to the story.

earnings-and-revenue-growth

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don’t have many shares in W. P. Carey. The company’s largest shareholder is The Vanguard Group, Inc., with ownership of 14%. In comparison, the second and third largest shareholders hold about 7.4% and 4.3% of the stock.

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.

Insider Ownership Of W. P. Carey

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

whether they have been buying or selling. ” data-reactid=”72″ type=”text”>Our most recent data indicates that insiders own some shares in W. P. Carey Inc.. The insiders have a meaningful stake worth US$130m. I sometimes take an interest in whether they have been buying or selling.

General Public Ownership

With a 35% ownership, the general public have some degree of sway over W. P. Carey. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

1 warning sign we’ve spotted with W. P. Carey .” data-reactid=”76″ type=”text”>It’s always worth thinking about the different groups who own shares in a company. But to understand W. P. Carey better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we’ve spotted with W. P. Carey .

this free report showing whether analysts are predicting a brighter future.” data-reactid=”77″ type=”text”>But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”79″ type=”text”>

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].

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