Large shareholder groups of Hengtai Securities Co., Ltd (HKG:1476) have power over the company. Generally speaking, as a company grows, institutions increase their ownership. Conversely, insiders often decrease their ownership over time. We also tend to see a decline in insider participation in companies that were previously public.
Hengtai Securities has a market capitalization of HK$7.2 billion, so we expect some institutional investors to have taken notice of the stock. Our analysis of societal ownership below shows that institutions own shares in society. Let’s dig deeper into each type of owner to learn more about Hengtai Securities.
See our latest analysis for Hengtai Securities
What does institutional ownership tell us about Hengtai securities?
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.
As you can see, institutional investors hold a sizeable share of Hengtai Securities. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. If multiple institutions change their minds on a stock at the same time, you could see the stock price drop quickly. So it is worth checking the earnings history of Hengtai Securities below. Of course, the future is what really matters.
We note that hedge funds have no significant investment in Hengtai Securities. Baotou Huazi Industry Co., Ltd is currently the largest shareholder, with 12% of the outstanding shares. In comparison, the second and third shareholders hold approximately 8.1% and 6.0% of the shares.
A closer look at our ownership data shows that the top 7 shareholders collectively own less than half of the ledger, suggesting a large group of small shareholders where no single shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. Our information suggests there is no analyst coverage of the stock, so it is likely little known.
Insider Ownership of Hengtai Securities
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.
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 data does not allow us to confirm that the members of the board of directors personally hold shares. It is rare to see such a low level of personal ownership among the board (and our data may be incomplete). Concerned investors should check here whether insiders have sold or bought.
General public property
The general public, including retail investors, owns 58% of Hengtai Securities. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
Private Company Ownership
It seems that private companies own 25% of the shares of Hengtai Securities. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Ownership of a public company
It seems to us that public companies own 12% of Hengtai Securities. We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. To do this, you need to find out about the 4 warning signs we spotted some with Hengtai Securities (including 1 that is potentially serious).
Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.
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 in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
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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.