Hebei Broadcasting Wireless Media Co., Ltd.'s (SZSE:301551) top owners are private companies with 49% stake, while 27% is held by private equity firms

Key Insights

• The considerable ownership by private companies in Hebei Broadcasting Wireless Media indicates that they collectively have a greater say in management and business strategy
• 61% of the business is held by the top 2 shareholders
• Institutional ownership in Hebei Broadcasting Wireless Media is 11%

If you want to know who really controls Hebei Broadcasting Wireless Media Co., Ltd. (SZSE:301551), 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 private companies with 49% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Private equity firms, on the other hand, account for 27% of the company's stockholders.

In the chart below, we zoom in on the different ownership groups of Hebei Broadcasting Wireless Media.

Check out our latest analysis for Hebei Broadcasting Wireless Media

What Does The Institutional Ownership Tell Us About Hebei Broadcasting Wireless Media?

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.

We can see that Hebei Broadcasting Wireless Media does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Hebei Broadcasting Wireless Media's historic earnings and revenue below, but keep in mind there's always more to the story.

Hebei Broadcasting Wireless Media is not owned by hedge funds. The company's largest shareholder is Hebei Radio And Television Media Group Co., Ltd., with ownership of 45%. In comparison, the second and third largest shareholders hold about 16% and 11% of the stock.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of 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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Hebei Broadcasting Wireless Media

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. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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.

Our data cannot confirm that board members are holding shares personally. It is unusual not to have at least some personal holdings by board members, so our data might be flawed. A good next step would be to check how much the CEO is paid.

General Public Ownership

The general public, who are usually individual investors, hold a 13% stake in Hebei Broadcasting Wireless Media. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Equity Ownership

Private equity firms hold a 27% stake in Hebei Broadcasting Wireless Media. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.

Private Company Ownership

It seems that Private Companies own 49%, of the Hebei Broadcasting Wireless Media stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

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. Take risks for example - Hebei Broadcasting Wireless Media has 2 warning signs we think you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.