- Hong Kong
- Consumer Durables
Skyworth Group Limited (HKG:751) Top Key Executive Wang Wong, the company's largest shareholder sees 8.4%reduction in holdings value
If you want to know who really controls Skyworth Group Limited (HKG:751), 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 individual insiders with 51% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, insiders as a group endured the highest losses after market cap fell by HK$1.2b.
Let's take a closer look to see what the different types of shareholders can tell us about Skyworth Group.
See our latest analysis for Skyworth Group
What Does The Institutional Ownership Tell Us About Skyworth Group?
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.
Skyworth Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Skyworth Group's earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in Skyworth Group. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Skyworth Group's case, its Top Key Executive, Wang Wong, is the largest shareholder, holding 49% of shares outstanding. With 2.1% and 1.4% of the shares outstanding respectively, The Vanguard Group, Inc. and Dimensional Fund Advisors LP are the second and third largest shareholders. Furthermore, CEO Chi Shi is the owner of 1.0% of the company's shares.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Skyworth Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
It seems that insiders own more than half the Skyworth Group Limited stock. This gives them a lot of power. Given it has a market cap of HK$13b, that means insiders have a whopping HK$6.5b worth of shares in their own names. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.
General Public Ownership
The general public, who are usually individual investors, hold a 41% stake in Skyworth Group. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
It's always worth thinking about the different groups who own shares in a company. But to understand Skyworth Group better, we need to consider many other factors. For example, we've discovered 3 warning signs for Skyworth Group that you should be aware of before investing here.
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
Skyworth Group Limited, an investment holding company, researches and develops, manufactures, sells, and exports consumer electronic products.
Good value with reasonable growth potential.