New Zealand markets close in 1 hour 29 minutes
  • NZX 50

    10,940.58
    +78.24 (+0.72%)
     
  • NZD/USD

    0.6209
    -0.0004 (-0.06%)
     
  • NZD/EUR

    0.5945
    -0.0009 (-0.15%)
     
  • ALL ORDS

    6,811.10
    +14.20 (+0.21%)
     
  • ASX 200

    6,624.20
    +11.60 (+0.18%)
     
  • OIL

    110.29
    +1.86 (+1.72%)
     
  • GOLD

    1,811.60
    +10.10 (+0.56%)
     
  • NASDAQ

    11,585.68
    +81.98 (+0.71%)
     
  • FTSE

    7,232.65
    +64.00 (+0.89%)
     
  • Dow Jones

    31,097.26
    +321.86 (+1.05%)
     
  • DAX

    12,773.38
    -39.65 (-0.31%)
     
  • Hang Seng

    21,842.05
    +11.70 (+0.05%)
     
  • NIKKEI 225

    26,369.24
    +215.43 (+0.82%)
     
  • NZD/JPY

    84.5060
    +0.2670 (+0.32%)
     

Is Innovative Industrial Properties, Inc. (NYSE:IIPR) Popular Amongst Institutions?

·4-min read

The big shareholder groups in Innovative Industrial Properties, Inc. (NYSE:IIPR) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

With a market capitalization of US$3.6b, Innovative Industrial Properties is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about Innovative Industrial Properties.

View our latest analysis for Innovative Industrial Properties

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Innovative Industrial Properties?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

We can see that Innovative Industrial Properties 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 Innovative Industrial Properties' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growth
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 Innovative Industrial Properties. Our data shows that BlackRock, Inc. is the largest shareholder with 16% of shares outstanding. The Vanguard Group, Inc. is the second largest shareholder owning 14% of common stock, and State Street Global Advisors, Inc. holds about 5.2% of the company stock.

A closer look at our ownership figures suggests that the top 17 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Innovative Industrial Properties

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.

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 some shares in Innovative Industrial Properties, Inc.. This is a big company, so it is good to see this level of alignment. Insiders own US$49m 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 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Innovative Industrial Properties. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Innovative Industrial Properties better, we need to consider many other factors. To that end, you should be aware of the 3 warning signs we've spotted with Innovative Industrial Properties .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting