Institutional investors may adopt severe steps after Universal Health Realty Income Trust’s (NYSE:UHT) latest 7.9% drop adds to a year losses

Basic knowledge

  • Significantly high institutional ownership means that Universal Health Realty Income Trust’s stock prices are sensitive to trades.
  • The 7 largest shareholders own 51% of the company
  • Property research, combined with historical performance data, can help gain a good understanding of the opportunities in a stock.

A look at the shareholders of the Universal Health Realty Income Trust (NYSE:UHT) can tell us which group is the strongest. The group that has the largest stake in the company is corporations, precisely around 66%. In other words, the group faces maximum upside potential (or downside risk).

And institutional investors saw asset values ​​drop 7.9% last week. The final loss, which adds up to a one-year loss of 15% for shareholders, may not be very favorable for this group of investors. Institutions, often referred to as “market makers”, have significant power in influencing the price dynamics of any stock. Therefore, if the Universal Health Realty Income Trust’s share price weakness persists, institutional investors may feel compelled to sell the stock, which may not be ideal for individual investors.

In the table below, we zoom in on the different ownership groups of the Universal Health Realty Income Trust.

View our latest analysis for Universal Health Realty Income Trust

ownership breakdown
NYSE:UHT Ownership Breakdown December 19, 2022

What Does Corporate Property Tell Us About Universal Health Realty Income Trust?

Institutional investors often compare their own returns with those of a widely followed index. Therefore, they usually consider acquiring larger companies included in the relevant benchmark index.

We can see that Universal Health Realty Income Trust has institutional investors; and they hold a significant portion of the company’s stock. This means some credibility among professional traders. However, we cannot rely on this fact alone because institutions sometimes make bad investments like everyone else. If two large institutional investors try to sell a stock at the same time, it’s not unusual to see a large share price drop. That’s why it’s worth checking out the Universal Health Realty Income Trust’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.

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NYSE:UHT Earnings and Revenue Growth Dec 19, 2022

Institutional investors own more than 50% of the company, so together they can likely strongly influence board decisions. Universal Health Realty Income Trust does not belong to hedge funds. The company’s largest shareholder is BlackRock, Inc., with a 17% stake. By comparison, the second and third largest shareholders own approximately 16% and 5.9% of the stock. In addition, CEO Alan Miller owns 1.0% of the company.

We also observed that the 7 largest shareholders accounted for more than half of the stock book, with a few small shareholders balancing the interests of the larger shareholders to some extent.

Researching corporate ownership is a good way to measure and filter a stock’s expected performance. The same can be achieved by examining analyst emotions. Our information indicates that the stock does not have any analyst coverage, so it is likely little known.

Insider Ownership of Universal Health Realty Income Trust

The definition of insiders can be subjective and differ between jurisdictions. Our data at least reflect individual insiders who have taken over board members. Company management runs the business, but the CEO is accountable to the board, even if he is a member.

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Most people find insider ownership positive as it can show that the board is aligned with other shareholders. However, in some cases, too much power has been concentrated within this group.

Shareholders will likely be interested to learn that insiders hold stakes in the Universal Health Realty Income Trust. Insiders, for their part, own a $13 million stake in the $654 million company. This shows at least some cohesion. You can click here to see if insiders are trading.

General Public Property

The general public – including individual investors – own a 27% stake in the company and therefore cannot be easily overlooked. While this group may not necessarily make the decisions, it can certainly have a real impact on how the company is run.

Public Company Ownership

We see that publicly traded companies own 5.7% of the issued Universal Health Realty Income Trust shares. This may be a strategic interest and the two companies may have related business interests. They may be separated. This holding is probably worth further investigation.

Next steps:

It’s always worth considering the different groups that own shares in a company. But to better understand the Universal Health Realty Income Trust, we need to consider many other factors. Like risks. Every company has them and we’ve identified 2 warning signs for Universal Health Realty Income Trust (1 of them cannot be ignored!)

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of course this may not be the best stock to buy. Therefore, you may want to see our Free collection of interesting prospects boasting favorable financial situations.

Note: The figures in this article have been calculated using data from the last twelve months, which represents the 12-month period ending on the last date of the month in which the financial statements are prepared. This may not be consistent with full-year annual report figures.

Valuation is complex, but we help make it simple.

find out whether Universal Health Realty Income Assurance potentially over or undervalued by checking our comprehensive analysis, including fair value estimates, risks and warnings, dividends, insider trading and financial health.

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This article by Simply Wall St is general in nature. We only provide commentary based on historical data and analyst estimates using an unbiased methodology, and our articles do not constitute financial advice. It does not constitute advice to buy or sell any stock and does not take into account your goals or financial situation. We aim to bring you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any of the stocks mentioned.


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