Individual investors are Linklogis Inc.'s (HKG:9959) biggest owners and were hit after market cap dropped HK$683m

Key Insights

• The considerable ownership by individual investors in Linklogis indicates that they collectively have a greater say in management and business strategy
• The top 5 shareholders own 53% of the company
• Insider ownership in Linklogis is 25%

To get a sense of who is truly in control of Linklogis Inc. (HKG:9959), it is important to understand the ownership structure of the business. We can see that individual investors own the lion's share in the company with 28% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Following a 10% decrease in the stock price last week, individual investors suffered the most losses, but insiders who own 25% stock also took a hit.

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

View our latest analysis for Linklogis

What Does The Institutional Ownership Tell Us About Linklogis?

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.

We can see that Linklogis does have institutional investors; and they hold a good portion of the company's stock. 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. 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 Linklogis, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Linklogis. Our data shows that Tencent Holdings Limited is the largest shareholder with 15% of shares outstanding. With 13% and 9.6% of the shares outstanding respectively, Song Qun and CITIC Capital Holdings Limited, Asset Management Arm are the second and third largest shareholders. Song Qun, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making.

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 Linklogis

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems insiders own a significant proportion of Linklogis Inc.. Insiders have a HK$1.5b stake in this HK$6.0b business. 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

With a 28% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Linklogis. 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

Public companies currently own 15% of Linklogis stock. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Linklogis better, we need to consider many other factors.

Many find it useful to take an in depth look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

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.