Public companies in Hang Lung Properties Limited (HKG:101) are its biggest bettors, and their bets paid off as stock gained 5.0% last week

Key Insights

• The considerable ownership by public companies in Hang Lung Properties indicates that they collectively have a greater say in management and business strategy
• 64% of the company is held by a single shareholder (Hang Lung Group Limited)
• Insiders have been buying lately

Every investor in Hang Lung Properties Limited (HKG:101) should be aware of the most powerful shareholder groups. With 64% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, public companies benefitted the most after the company's market cap rose by HK$1.5b last week.

Let's delve deeper into each type of owner of Hang Lung Properties, beginning with the chart below.

View our latest analysis for Hang Lung Properties

What Does The Institutional Ownership Tell Us About Hang Lung Properties?

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.

Hang Lung Properties already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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 Hang Lung Properties' historic earnings and revenue below, but keep in mind there's always more to the story.

Hang Lung Properties is not owned by hedge funds. Hang Lung Group Limited is currently the company's largest shareholder with 64% of shares outstanding. This implies that they have majority interest control of the future of the company. With 1.5% and 1.1% of the shares outstanding respectively, The Vanguard Group, Inc. and Schroder Investment Management Limited are the second and third largest shareholders.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Hang Lung Properties

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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 less than 1% of Hang Lung Properties Limited. Keep in mind that it's a big company, and the insiders own HK$174m worth of shares. The absolute value might be more important than the proportional share. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are usually individual investors, hold a 24% stake in Hang Lung Properties. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 64% of the Hang Lung Properties shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

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 - Hang Lung Properties has 3 warning signs (and 1 which can't be ignored) we think you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.