Key Insights
Investors in Chicago Atlantic Real Estate Finance, Inc. ( NASDAQ:REFI ) should be aware of the most powerful shareholder groups. With 54% of the shares, retail investors hold the largest stake in the company. In other words, this group stands to gain the most (or lose the most) from their investment in the company.
Meanwhile, institutional investors own 28% of the company's shares. Institutions will often hold stock in larger companies, and we expect to see insiders owning a noticeable percentage of shares in smaller companies as well.
Let's take a closer look to see what the different types of shareholders can tell us about Chicago Atlantic Real Estate Finance.
View our latest analysis for Chicago Atlantic Real Estate Finance
Ownership Breakdown
What do institutional ownership figures tell us about Chicago Atlantic Real Estate Finance?
Institutional investors commonly compare their own company's earnings to the earnings of a commonly tracked index, so they typically consider buying large companies that are included in the relevant benchmark index.
As you can see, Chicago Atlantic Real Estate Finance has a fair amount of institutional investors holding shares. This may suggest that the company has a certain degree of credibility in the investment community. However, it's best to be careful about relying on their approval – even institutional investors can be wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop sharply. It's therefore worth looking at Chicago Atlantic Real Estate Finance's earnings history, below. Of course, it's the future that really matters.
Revenue and income growth
We can see that hedge funds don't have much investment in Chicago Atlantic Real Estate Finance. Our data shows that BlackRock Inc. is the largest shareholder with 6.9% of shares outstanding. Ray Thurston is the second largest shareholder holding 6.5% of common stock, while Vanguard Group Inc. holds about 4.0% of the stock. Additionally, we find that CEO Anthony Capel holds 1.9% of the shares allocated to him.
A closer look at our ownership data shows that the top 25 shareholders collectively hold less than half of the registered shares, suggesting there is a large group of smaller shareholders where no single shareholder holds the majority.
The story continues
While studying institutional ownership for a company can add value to your research, it is also a good idea to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting as well.
Chicago Atlantic Real Estate Finance Insider Ownership
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. While a company's management runs the business, the CEO is accountable to the board, even if he or she is a board member.
While most view insider ownership as a positive because it can indicate the board is well aligned with other shareholders, in some cases it can lead to too much power being concentrated in one group.
Our information indicates that insiders hold a significant number of shares in Chicago Atlantic Real Estate Finance, Inc. The company has a market capitalization of just US$300m, but insiders hold US$53m worth of shares in their own names. This could suggest that the founders still have a significant stake. To see if the founders have bought or sold shares, click here.
General public property
The general public owns 54% of Chicago Atlantic Real Estate Finance's shares, which indicates that the stock is quite popular, as they are typically retail investors. This size of ownership gives general public investors a degree of collective power: they can and do influence decisions on executive compensation, dividend policy, and proposed acquisitions of the business.
Next steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important… For example, we've spotted 2 warning signs for Chicago Atlantic Real Estate Finance (1 is potentially serious!) that you should be aware of before investing.
But ultimately, it is the future, not the past, that will determine how successful the owners of this business will be, so we think you should take a look at this free report which shows whether analysts are predicting a brighter future.
Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.
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This article by Simply Wall St is of general nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell a stock, and does not take into account your objectives or financial situation. We aim to provide long-term analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned herein.