Kingboard Laminates Holdings Limited's (HKG:1888) 4.9% loss last week hit both individual investors who own 74% as well as institutions

Key Insights

• The considerable ownership by public companies in Kingboard Laminates Holdings indicates that they collectively have a greater say in management and business strategy
• The largest shareholder of the company is Kingboard Holdings Limited with a 74% stake
• 13% of Kingboard Laminates Holdings is held by Institutions

If you want to know who really controls Kingboard Laminates Holdings Limited (HKG:1888), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 74% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Following a 4.9% decrease in the stock price last week, public companies suffered the most losses, but institutions who own 13% stock also took a hit.

Let's take a closer look to see what the different types of shareholders can tell us about Kingboard Laminates Holdings.

See our latest analysis for Kingboard Laminates Holdings

What Does The Institutional Ownership Tell Us About Kingboard Laminates Holdings?

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 Kingboard Laminates Holdings. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Kingboard Laminates Holdings' earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Kingboard Laminates Holdings. Kingboard Holdings Limited is currently the largest shareholder, with 74% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Meanwhile, the second and third largest shareholders, hold 5.7% and 1.3%, of the shares outstanding, respectively.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Kingboard Laminates Holdings

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

Our most recent data indicates that insiders own less than 1% of Kingboard Laminates Holdings Limited. Keep in mind that it's a big company, and the insiders own HK$126m 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

With a 13% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kingboard Laminates Holdings. 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

It appears to us that public companies own 74% of Kingboard Laminates Holdings. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Kingboard Laminates Holdings better, we need to consider many other factors. For instance, we've identified 1 warning sign for Kingboard Laminates Holdings that you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com