Could The Hutchison Telecommunications Hong Kong Holdings Limited (HKG:215) Ownership Structure Tell Us Something Useful?

If you want to know who really controls Hutchison Telecommunications Hong Kong Holdings Limited (HKG:215), then you'll have to look at the makeup of its share registry. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

Hutchison Telecommunications Hong Kong Holdings is a smaller company with a market capitalization of HK$5.8b, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Hutchison Telecommunications Hong Kong Holdings.

See our latest analysis for Hutchison Telecommunications Hong Kong Holdings

What Does The Institutional Ownership Tell Us About Hutchison Telecommunications Hong Kong 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.

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

Hedge funds don't have many shares in Hutchison Telecommunications Hong Kong Holdings. Looking at our data, we can see that the largest shareholder is CK Hutchison Holdings Limited with 66% of shares outstanding. This implies that they have majority interest control of the future of the company. With 7.3% and 1.1% of the shares outstanding respectively, Li Ka Shing Foundation Ltd, Endowment Arm and Ka-shing Li are the second and third largest shareholders.

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 Hutchison Telecommunications Hong Kong Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

I can report that insiders do own shares in Hutchison Telecommunications Hong Kong Holdings Limited. It has a market capitalization of just HK$5.8b, and insiders have HK$80m worth of shares, in their own names. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public holds a 22% stake in Hutchison Telecommunications Hong Kong Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Public Company Ownership

It appears to us that public companies own 66% of Hutchison Telecommunications Hong Kong Holdings. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Hutchison Telecommunications Hong Kong Holdings (including 1 which is can't be ignored) .

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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