Key Insights

Given the large stake in the stock by institutions, Sirius Real Estate's stock price might be vulnerable to their trading decisions The top 25 shareholders own 49% of the company Insiders have bought recently

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A look at the shareholders of Sirius Real Estate Limited (LON:SRE) can tell us which group is most powerful. We can see that institutions own the lion's share in the company with 55% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And as as result, institutional investors reaped the most rewards after the company's stock price gained 16% last week. The gains from last week would have further boosted the one-year return to shareholders which currently stand at 1.4%.

Let's take a closer look to see what the different types of shareholders can tell us about Sirius Real Estate.

Check out our latest analysis for Sirius Real Estate LSE:SRE Ownership Breakdown April 17th 2025

What Does The Institutional Ownership Tell Us About Sirius Real Estate?

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.

We can see that Sirius Real Estate 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. 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 Sirius Real Estate's historic earnings and revenue below, but keep in mind there's always more to the story.LSE:SRE Earnings and Revenue Growth April 17th 2025

Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Sirius Real Estate is not owned by hedge funds. The company's largest shareholder is BlackRock, Inc., with ownership of 8.5%. Meanwhile, the second and third largest shareholders, hold 7.7% and 5.8%, of the shares outstanding, respectively. Furthermore, CEO Andrew Coombs is the owner of 0.8% of the company's shares.

Our studies suggest that the top 25 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.

Story Continues

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 Sirius Real Estate

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can report that insiders do own shares in Sirius Real Estate Limited. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around UK£32m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.

General Public Ownership

With a 43% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Sirius Real Estate. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk.  We've identified 2 warning signs  with Sirius Real Estate (at least 1 which is a bit unpleasant)  , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

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