Semiconductor Manufacturing International Corporation's (HKG:981) market cap touched HK$453b last week, benefiting both individual investors who own 58% as well as institutions

Key Insights

• Significant control over Semiconductor Manufacturing International by individual investors implies that the general public has more power to influence management and governance-related decisions
• 39% of the business is held by the top 25 shareholders
• Institutions own 17% of Semiconductor Manufacturing International

Every investor in Semiconductor Manufacturing International Corporation (HKG:981) should be aware of the most powerful shareholder groups. With 58% stake, individual investors 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).

Following a 22% increase in the stock price last week, individual investors profited the most, but institutions who own 17% stock also stood to gain from the increase.

Let's delve deeper into each type of owner of Semiconductor Manufacturing International, beginning with the chart below.

View our latest analysis for Semiconductor Manufacturing International

What Does The Institutional Ownership Tell Us About Semiconductor Manufacturing International?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in Semiconductor Manufacturing International. 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. 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 Semiconductor Manufacturing International's earnings history below. Of course, the future is what really matters.

Semiconductor Manufacturing International is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is China Information and Communications Technology Group Co., Ltd. with 15% of shares outstanding. With 9.3% and 2.2% of the shares outstanding respectively, Huaxin Investment Management Co., Ltd. and China Asset Management Co. Ltd. are the second and third largest shareholders.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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. 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 Semiconductor Manufacturing International

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 information suggests that Semiconductor Manufacturing International Corporation insiders own under 1% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own HK$107m worth of shares. 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 substantial 58% stake in Semiconductor Manufacturing International, suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Equity Ownership

With an ownership of 9.3%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.

Private Company Ownership

Our data indicates that Private Companies hold 15%, 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 Semiconductor Manufacturing International better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Semiconductor Manufacturing International you should know about.

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.