Private companies are TCL Electronics Holdings Limited's (HKG:1070) biggest owners and were rewarded after market cap rose by HK$2.8b last week

Key Insights

• TCL Electronics Holdings' significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• TCL Industries Holdings Co., Ltd. owns 55% of the company
• Institutions own 11% of TCL Electronics Holdings

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If you want to know who really controls TCL Electronics Holdings Limited (HKG:1070), then you'll have to look at the makeup of its share registry. We can see that private companies own the lion's share in the company with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, private companies collectively scored the highest last week as the company hit HK$25b market cap following a 13% gain in the stock.

In the chart below, we zoom in on the different ownership groups of TCL Electronics Holdings.

View our latest analysis for TCL Electronics Holdings

What Does The Institutional Ownership Tell Us About TCL Electronics Holdings?

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.

As you can see, institutional investors have a fair amount of stake in TCL Electronics Holdings. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at TCL Electronics Holdings' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in TCL Electronics Holdings. The company's largest shareholder is TCL Industries Holdings Co., Ltd., with ownership of 55%. This implies that they have majority interest control of the future of the company. Shenzhen LETV Bridge Merger Acquisition Fund Investment Management Enterprise is the second largest shareholder owning 4.9% of common stock, and GF Fund Management Co., Ltd. holds about 1.7% of the company stock.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of TCL Electronics Holdings

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 information suggests that TCL Electronics Holdings Limited insiders own under 1% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own HK$130m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 29% stake in TCL Electronics Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 59%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand TCL Electronics Holdings better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with TCL Electronics Holdings .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.