Private companies among Miramar Hotel and Investment Company, Limited's (HKG:71) largest shareholders, saw gain in holdings value after stock jumped 6.3% last week

Key Insights

• The considerable ownership by private companies in Miramar Hotel and Investment Company indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Henderson Development Limited with a 50% stake
• Insider ownership in Miramar Hotel and Investment Company is 13%

A look at the shareholders of Miramar Hotel and Investment Company, Limited (HKG:71) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are private companies with 52% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, private companies collectively scored the highest last week as the company hit HK$7.5b market cap following a 6.3% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Miramar Hotel and Investment Company.

Check out our latest analysis for Miramar Hotel and Investment Company

What Does The Lack Of Institutional Ownership Tell Us About Miramar Hotel and Investment Company?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Miramar Hotel and Investment Company might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

We note that hedge funds don't have a meaningful investment in Miramar Hotel and Investment Company. The company's largest shareholder is Henderson Development Limited, with ownership of 50%. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. For context, the second largest shareholder holds about 10.0% of the shares outstanding, followed by an ownership of 1.5% by the third-largest shareholder. Yuk Bun Fung, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Miramar Hotel and Investment Company

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Our most recent data indicates that insiders own a reasonable proportion of Miramar Hotel and Investment Company, Limited. Insiders own HK$990m worth of shares in the HK$7.5b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 34% stake in Miramar Hotel and Investment Company. 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.

Private Company Ownership

We can see that Private Companies own 52%, of the shares on issue. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Miramar Hotel and Investment Company you should be aware of.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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.