COSCO SHIPPING Technology Co., Ltd.'s (SZSE:002401) market cap dropped CN¥792m last week; Public companies bore the brunt

Key Insights

• Significant control over COSCO SHIPPING Technology by public companies implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 2 shareholders
• Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of COSCO SHIPPING Technology Co., Ltd. (SZSE:002401) can tell us which group is most powerful. The group holding the most number of shares in the company, around 49% to be precise, is public companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As market cap fell to CN¥6.2b last week, public companies would have faced the highest losses than any other shareholder groups of the company.

Let's delve deeper into each type of owner of COSCO SHIPPING Technology, beginning with the chart below.

See our latest analysis for COSCO SHIPPING Technology

What Does The Institutional Ownership Tell Us About COSCO SHIPPING Technology?

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.

As you can see, institutional investors have a fair amount of stake in COSCO SHIPPING Technology. 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 COSCO SHIPPING Technology's historic earnings and revenue below, but keep in mind there's always more to the story.

COSCO SHIPPING Technology is not owned by hedge funds. COSCO SHIPPING Development Co., Ltd. is currently the largest shareholder, with 49% of shares outstanding. National Council for Social Security Fund is the second largest shareholder owning 2.3% of common stock, and Ping An Asset Management Co., Ltd. holds about 1.1% of the company 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.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of COSCO SHIPPING Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 most recent data indicates that insiders own less than 1% of COSCO SHIPPING Technology Co., Ltd.. However, it's possible that insiders might have an indirect interest through a more complex structure. It seems the board members have no more than CN¥25m worth of shares in the CN¥6.2b company. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

With a 42% ownership, the general public, mostly comprising of individual investors, have some degree of sway over COSCO SHIPPING Technology. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 49% of COSCO SHIPPING Technology. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand COSCO SHIPPING Technology better, we need to consider many other factors. Take risks for example - COSCO SHIPPING Technology has 2 warning signs (and 1 which is concerning) we think you should know about.

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.