With a 66% stake, Braemar Hotels & Resorts Inc. (NYSE: BHR) enjoys strong institutional support

A look at the shareholders of Braemar Hotels & Resorts Inc. (NYSE: BHR) can tell us which group is more powerful. And the group that holds the biggest slice of the pie are institutions with 66% ownership. In other words, the group faces the maximum upside potential (or downside risk).

Given the huge amount of money and research capabilities at their disposal, institutional ownership tends to carry a lot of weight, especially with individual investors. Therefore, a large amount of institutional money invested in a company is generally considered a positive attribute.

Let’s take a closer look at what different types of shareholders can tell us about Braemar Hotels & Resorts.

NYSE: BHR Ownership Allocation on October 13, 2022

What does institutional ownership tell us about Braemar Hotels & Resorts?

Institutional investors typically compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.

We can see that Braemar Hotels & Resorts has institutional investors; and they own a good part of the shares of the company. This implies that analysts working for these institutions have reviewed the stock and like it. But like everyone else, they can be wrong. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it’s worth taking a look at the Braemar Hotels & Resorts revenue history below. Of course, the future is what really matters.

earnings-and-revenue-growth
NYSE: BHR Earnings and Revenue Growth October 13, 2022

Institutional investors own more than 50% of the company, so together they can probably heavily influence board decisions. Braemar Hotels & Resorts is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is BlackRock, Inc. with 15% of the shares outstanding. For context, the second shareholder owns approximately 8.1% of the outstanding shares, followed by a 7.9% ownership by the third shareholder.

We also observed that the top 10 shareholders represent more than half of the share register, with some small shareholders to balance the interests of the larger ones to some extent.

While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There are plenty of analysts covering the stock, so it might be interesting to see what they are predicting as well.

Insider Ownership of Braemar Hotels & Resorts

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company runs the company, but the CEO will answer to the board of directors, even if he is a member of it.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders own shares of Braemar Hotels & Resorts Inc. As individuals, insiders collectively own US$9.5 million of the US$334 million company. Good to see insider investing, but might be worth checking out if these insiders bought.

General public property

The general public, who are generally individual investors, hold a 15% stake in Braemar Hotels & Resorts. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other major shareholders.

Private Company Ownership

It appears that private companies own 16% of the shares of Braemar Hotels & Resorts. Private companies can be related parties. Sometimes insiders have an interest in a public company through an equity stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.

Next steps:

I find it very interesting to see who exactly owns a business. But to really get insight, we also need to consider other information. For example, we have identified 3 warning signs for Braemar Hotels & Resorts (2 are concerning) of which you should be aware.

If you’re like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check this free report showing analysts’ predictions for its future.

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

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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