Institutions, owning a majority stake in NexPoint Diversified Real Estate Trust (NYSE:NXDT), continue to exercise substantial influence on its share price. As of today, these institutions hold 51% of the company's shares, with the top dozen shareholders controlling half of the business. This level of ownership underscores their significant sway over the company's market performance.
The main shareholder in NXDT is its CEO, James Dondero, who holds a 13% stake in the company. The second and third-largest shareholders follow with 8.6% and 5.8% stakes respectively. Interestingly, no hedge funds are currently holding NXDT shares.
The strong interest from these institutions in companies like NXDT, which are featured in market indices, suggests analyst approval of their investment strategies. However, this also raises potential risks. Simultaneous sell-offs from these major shareholders could provoke a sharp drop in the share price.
When considering an investment in NXDT, potential investors are advised to take into account the company's past earnings trajectory. This information can provide valuable insights into the company's financial health and future prospects.
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