This is what the shareholding structure of American Tower Corporation (REIT) (NYSE: AMT) looks like

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A look at the shareholders of American Tower Corporation (REIT) (NYSE: AMT) can tell us which group is more powerful. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Companies that were previously owned by the state tend to have fewer insiders.

American Tower Corporation (REIT) has a market cap of US $ 126 billion, so it is too large to go unnoticed. We would expect institutions and retail investors to own a portion of the company. In the graph below, we can see that the institutions hold shares in the company. Let’s dig deeper into each type of owner to find out more about American Tower Corporation (REIT).

Check out our latest review for American Tower Corporation (REIT)

NYSE Ownership Breakdown: AMT July 9, 2021

What does institutional ownership tell us about American Tower Corporation (REIT)?

Institutional investors generally 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.

As you can see, institutional investors own a sizeable share of American Tower Corporation (REIT). This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see American Tower Corporation (REIT) historical earnings and earnings below, but keep in mind that there is always more to tell.

profit and revenue growth
NYSE: AMT Profits and Revenue Growth July 9, 2021

Institutional investors own more than 50% of the company, so together they can likely have a strong influence on the decisions of the board. American Tower Corporation (REIT) is not owned by hedge funds. The company’s largest shareholder is The Vanguard Group, Inc., with a 12% stake. For context, the second largest shareholder owns around 7.6% of the outstanding shares, followed by 3.8% ownership by the third largest shareholder.

A closer look at our ownership figures suggests that the top 22 shareholders have a combined 51% ownership, implying that no shareholder has a majority.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.

Insider ownership of American Tower Corporation (REIT)

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company reports to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.

I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.

Our information suggests that insiders of American Tower Corporation (REIT) own less than 1% of the company. Since this is a large company, we would expect insiders to own only a small percentage. But it’s worth noting that they own $ 377 million in stock. In this kind of situation, it may be more interesting to see if these insiders have bought or sold.

General public property

The general public, with a 10% stake in the company, will not be easily ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Next steps:

It’s always worth thinking about the different groups that own shares in a company. But to better understand American Tower Corporation (REIT), there are many other factors that we need to consider. Like risks, for example. Every business has them, and we’ve spotted 3 warning signs for American Tower Corporation (REIT) (of which 1 is significant!) that you should know.

But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better future.

NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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