With 65% ownership of the shares, Gaming Realms plc (LON:GMR) is heavily dominated by institutional owners

• Given the large stake in the stock by institutions, Gaming Realms’ stock price might be vulnerable to their trading decisions

• 50% of the business is held by the top 8 shareholders

• Insiders own 20% of Gaming Realms

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If you want to know who really controls Gaming Realms plc (LON:GMR), then you’ll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 65% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Given the vast amount of money and research capacities at their disposal, institutional ownership tends to carry a lot of weight, especially with 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 Gaming Realms.

See our latest analysis for Gaming Realms

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Gaming Realms 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. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Gaming Realms’ historic earnings and revenue below, but keep in mind there’s always more to the story.

Institutional investors own over 50% of the company, so together than can probably strongly influence board decisions. We note that hedge funds don’t have a meaningful investment in Gaming Realms. Union Bancaire Privee Asset Management LLC is currently the largest shareholder, with 13% of shares outstanding. Michael Buckley is the second largest shareholder owning 8.7% of common stock, and Rich Ricci holds about 6.1% of the company stock. Michael Buckley, who is the second-largest shareholder, also happens to hold the title of Top Key Executive.