Individual investors own 20% of C&D International Investment Group Limited (HKG:1908) shares but public companies control 57% of the company

Key Insights

• The considerable ownership by public companies in C&D International Investment Group indicates that they collectively have a greater say in management and business strategy
• Xiamen C&D Inc. owns 57% of the company
• Recent sales by insiders

We've discovered 2 warning signs about C&D International Investment Group. View them for free.

Every investor in C&D International Investment Group Limited (HKG:1908) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 57% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Meanwhile, individual investors make up 20% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of C&D International Investment Group.

See our latest analysis for C&D International Investment Group

What Does The Institutional Ownership Tell Us About C&D International Investment 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.

We can see that C&D International Investment Group does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of C&D International Investment Group, (below). Of course, keep in mind that there are other factors to consider, too.

It looks like hedge funds own 7.7% of C&D International Investment Group shares. That worth noting, since hedge funds are often quite active investors, who may try to influence management. Many want to see value creation (and a higher share price) in the short term or medium term. Our data shows that Xiamen C&D Inc. is the largest shareholder with 57% of shares outstanding. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 7.7% and 3.7%, of the shares outstanding, respectively.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of C&D International Investment Group

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 data suggests that insiders own under 1% of C&D International Investment Group Limited in their own names. Keep in mind that it's a big company, and the insiders own HK$47m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, who are usually individual investors, hold a 20% stake in C&D International Investment 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.

Public Company Ownership

Public companies currently own 57% of C&D International Investment Group stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

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

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.