Are institutions heavily invested in Capstead Mortgage Corporation (NYSE: CMO) stock?



Take a look at the shareholders of Capstead Mortgage Corporation (NYSE: Director of Marketing) can tell us which group is the strongest. Institutions often own shares in larger companies, and we expect insiders to own a sizable percentage of smaller ones. Previously state-owned companies tend to have less insider ownership.

Capstead Mortgage, with a market cap of US $ 617 million, is a small-cap company, so many institutional investors may not be aware of it. In the diagram below, we can see that institutions own shares of the company. Let’s take a closer look at what the different types of shareholders can tell us about Capstead Mortgage.

Check out our latest Capstead Mortgage analysis

distribution of property

distribution of property

What does institutional ownership tell us about a Capstead mortgage?

Institutions typically compare themselves to a benchmark when they report to their investors, so they are often very enthusiastic about stocks when they are listed on the main index. We expect most companies to have multiple institutions on the register, especially if they are growing.

As you can see, institutional investors have a significant stake in Capstead Mortgage. This means that analysts working at these institutions looked at the stocks and liked them. But like everyone else, they could be wrong. If several organizations change their view of stocks at the same time, you can see how quickly the stock price falls. It is therefore worth taking a look at Capstead Mortgage’s earnings history below. Of course, the future really matters.

profits and income growth

profits and income growth

Investors should be aware that institutions actually own more than half of the company, so they can collectively wield considerable power. We note that hedge funds have no significant investment in Capstead Mortgage. BlackRock, Inc. is currently the largest shareholder in the company with 19% of the shares outstanding. Meanwhile, the second and third largest shareholders own 11% and 5.3% of the issued shares, respectively. In addition, we found that Philip Reinsch, CEO, owns 0.5% of the shares in their name.

We also noticed that the 9 largest shareholders account for more than half of the register of shareholders, with a few minor shareholders balancing the interests of the larger ones to some extent.

Studying the institutional ownership of a company can add value to your research, but it is also useful to study the recommendations of analysts to better understand the expected stock returns. Stocks are few in number by analysts, but not so much. So there is room for more coverage.

Insider Ownership Capstead Mortgage

The definition of company insiders can be subjective and vary by jurisdiction. Our data reflects individual insiders, at least members of the board of directors. The management of the company does business, but the CEO will be accountable to the board of directors, even if he or she is a member.

Insider ownership is positive when it signals that management thinks like the true owners of the company. However, a high degree of insider ownership can also give tremendous power to a small group within a company. In some cases, this can be negative.

We see that insiders own the shares of Capstead Mortgage Corporation. As individuals, insiders jointly own a $ 617 million company. Nice to see some insider investing, but it might be worth checking out if these insiders bought.

Common state property

The general public owns 23% of Capstead Mortgage. While this size of ownership may not be enough to influence a political decision in their favor, it can still collectively influence company policy.

Next steps:

While the various groups that own the company are worth considering, there are other factors that are even more important. Be aware that Capstead Mortgage Shows 2 warning signs in our investment analysis , and 1 of them concerns …

In the end the future is the most important… You can access this is free analyst forecasts report for the company

NB: The figures in this article are calculated using data for the last twelve months, which refers to a 12-month period ending on the last day of the month in which the financial statement is dated. This may not be consistent with the full year annual report.

This article by Simply Wall St is general in nature. It is not a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not include the latest announcements from price-sensitive companies or quality content. Simply Wall St has no position in any of the mentioned promotions.

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