What Kind Of Investors Own Most Of New Residential Investment Corp. (NYSE:NRZ)?
NYSE:NRZ) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.” data-reactid=”28″>Every investor in New Residential Investment Corp. (NYSE:NRZ) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of US$3.2b, New Residential Investment 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. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about New Residential Investment.
View our latest analysis for New Residential Investment ” data-reactid=”30″> View our latest analysis for New Residential Investment
What Does The Institutional Ownership Tell Us About New Residential Investment?
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 New Residential Investment does have institutional investors; and they hold a good portion of the company’s stock. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 New Residential Investment, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don’t have many shares in New Residential Investment. The company’s largest shareholder is The Vanguard Group, Inc., with ownership of 9.0%. For context, the second largest shareholder holds about 5.8% of the shares outstanding, followed by an ownership of 3.4% by the third-largest shareholder.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of New Residential Investment
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
click here to see if insiders have been buying or selling. ” data-reactid=”72″>Our most recent data indicates that insiders own less than 1% of New Residential Investment Corp.. Keep in mind that it’s a big company, and the insiders own US$15m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
The general public — mostly retail investors — own 52% of New Residential Investment. With this size of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to decline an acquisition or merger that may not improve profitability.
Next Steps:
We’ve identified 4 warning signs with New Residential Investment (at least 1 which doesn’t sit too well with us) , and understanding them should be part of your investment process.” data-reactid=”76″>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 4 warning signs with New Residential Investment (at least 1 which doesn’t sit too well with us) , and understanding them should be part of your investment process.
this free report showing analyst forecasts for its future.” data-reactid=”77″>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.
Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”79″>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.
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