Key Takeaways
- Institutions hold a significant 53% of Seaport Entertainment Group’s shares, with the top 4 shareholders controlling 53% of the company.
- Hedge funds own 39% of the company’s shares, with Pershing Square Capital Management, L.P. being the largest shareholder.
- Insiders own 1% of the company’s shares, worth US$3.1m, indicating some alignment of interests between shareholders and the board.
- The general public, comprising individual investors, owns 20% of the company’s shares.
- Institutional ownership and past performance data can help provide a good understanding of opportunities in a stock.
Introduction to Institutional Ownership
Institutions’ substantial holdings in Seaport Entertainment Group implies that they have significant influence over the company’s share price. A look at the shareholders of Seaport Entertainment Group Inc. (NYSE:SEG) can tell us which group is most powerful. The group holding the most number of shares in the company, around 40% to be precise, is institutions. In other words, the group stands to gain the most (or lose the most) from their investment into the company. Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors.
Breakdown of Ownership
We can see that Seaport Entertainment Group 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. 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 Seaport Entertainment Group. Of course, keep in mind that there are other factors to consider, too. The company’s earnings and revenue growth can provide valuable insights into its financial health and potential for future growth.
Hedge Fund Ownership
It looks like hedge funds own 39% of Seaport Entertainment Group shares. That catches my attention because hedge funds sometimes try to influence management, or bring about changes that will create near-term value for shareholders. Looking at our data, we can see that the largest shareholder is Pershing Square Capital Management, L.P. with 39% of shares outstanding. The second and third largest shareholders are Kahn Brothers Advisors LLC and Dimensional Fund Advisors LP, with an equal amount of shares to their name at 4.6%. This significant ownership by hedge funds could indicate that they are confident in the company’s potential for growth and are willing to take an active role in shaping its future.
Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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. 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. We can see that insiders own shares in Seaport Entertainment Group Inc.. It has a market capitalization of just US$279m, and insiders have US$3.1m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.
Public Ownership
With a 20% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Seaport Entertainment Group. 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. However, individual investors can still play an important role in shaping the company’s future by exercising their voting rights and engaging with the company’s management.
Conclusion and Future Outlook
It’s always worth thinking about the different groups who own shares in a company. But to understand Seaport Entertainment Group better, we need to consider many other factors. For instance, we’ve identified 1 warning sign for Seaport Entertainment Group that you should be aware of. 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. By analyzing the company’s ownership structure, financial performance, and industry trends, investors can make informed decisions about their investments and potentially benefit from the company’s growth.
