With 49% ownership, Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) has piqued the interest of institutional investors

In This Article:

Key Insights

  • Given the large stake in the stock by institutions, Angel Oak Mortgage REIT's stock price might be vulnerable to their trading decisions

  • 53% of the business is held by the top 4 shareholders

  • Insiders have sold recently

Every investor in Angel Oak Mortgage REIT, Inc. (NYSE:AOMR) should be aware of the most powerful shareholder groups. With 49% stake, institutions possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. Hence, having a considerable amount of institutional money invested in a company is often regarded as a desirable trait.

Let's take a closer look to see what the different types of shareholders can tell us about Angel Oak Mortgage REIT.

See our latest analysis for Angel Oak Mortgage REIT

ownership-breakdown
NYSE:AOMR Ownership Breakdown November 15th 2024

What Does The Institutional Ownership Tell Us About Angel Oak Mortgage REIT?

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.

Angel Oak Mortgage REIT already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Angel Oak Mortgage REIT, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
NYSE:AOMR Earnings and Revenue Growth November 15th 2024

It would appear that 22% of Angel Oak Mortgage REIT shares are controlled by hedge funds. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Davidson Kempner Capital Management LP is currently the largest shareholder, with 22% of shares outstanding. In comparison, the second and third largest shareholders hold about 22% and 4.7% of the stock.

On looking further, we found that 53% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

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