New York Mortgage Trust, Inc.'s (NASDAQ:NYMT) Recent 8.2% Pullback Adds to One-year Year Losses, Institutional Owners May Take Drastic Measures

Key Insights

Given the large stake in the stock by institutions, New York Mortgage Trust's stock price might be vulnerable to their trading decisions
A total of 24 investors have a majority stake in the company with 50% ownership
Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

Every investor in New York Mortgage Trust, Inc. (NASDAQ:NYMT) should be aware of the most powerful shareholder groups. We can see that institutions own the lion's share in the company with 56% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And institutional investors endured the highest losses after the company's share price fell by 8.2% last week. The recent loss, which adds to a one-year loss of 24% for stockholders, may not sit well with this group of investors. Also referred to as "smart money", institutions have a lot of sway over how a stock's price moves. As a result, if the decline continues, institutional investors may be pressured to sell New York Mortgage Trust which might hurt individual investors.

Let's take a closer look to see what the different types of shareholders can tell us about New York Mortgage Trust.

ownership-breakdown — NasdaqGS:NYMT Ownership Breakdown April 17th 2024

What Does The Institutional Ownership Tell Us About New York Mortgage Trust?

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.

New York Mortgage Trust already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at New York Mortgage Trust's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth — NasdaqGS:NYMT Earnings and Revenue Growth April 17th 2024

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. Hedge funds don't have many shares in New York Mortgage Trust. BlackRock, Inc. is currently the company's largest shareholder with 17% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 6.8% and 4.1%, of the shares outstanding, respectively.

After doing some more digging, we found that the top 24 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over 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.

Insider Ownership Of New York Mortgage Trust

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can report that insiders do own shares in New York Mortgage Trust, Inc.. As individuals, the insiders collectively own US$9.8m worth of the US$627m company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 42% stake in New York Mortgage Trust. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with New York Mortgage Trust , and understanding them should be part of your investment process.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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

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