COSCO SHIPPING Ports Limited's (HKG:1199) market cap touched HK$21b last week, benefiting both public companies who own 70% as well as institutions

Key Insights

• The considerable ownership by public companies in COSCO SHIPPING Ports indicates that they collectively have a greater say in management and business strategy
• 70% of the company is held by a single shareholder (COSCO SHIPPING Holdings Co., Ltd.)
• Insiders have bought recently

Every investor in COSCO SHIPPING Ports Limited (HKG:1199) should be aware of the most powerful shareholder groups. With 70% stake, public companies 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).

Public companies gained the most after market cap touched HK$21b last week, while institutions who own 15% also benefitted.

In the chart below, we zoom in on the different ownership groups of COSCO SHIPPING Ports.

Check out our latest analysis for COSCO SHIPPING Ports

What Does The Institutional Ownership Tell Us About COSCO SHIPPING Ports?

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.

As you can see, institutional investors have a fair amount of stake in COSCO SHIPPING Ports. 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 COSCO SHIPPING Ports, (below). Of course, keep in mind that there are other factors to consider, too.

COSCO SHIPPING Ports is not owned by hedge funds. COSCO SHIPPING Holdings Co., Ltd. is currently the company's largest shareholder with 70% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Meanwhile, the second and third largest shareholders, hold 5.0% and 1.8%, 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 plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of COSCO SHIPPING Ports

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. 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.

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 data suggests that insiders own under 1% of COSCO SHIPPING Ports Limited in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own HK$6.6m worth of shares. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 14% stake in the company, and hence can't easily be ignored. 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 70% of COSCO SHIPPING Ports stock. 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 COSCO SHIPPING Ports better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with COSCO SHIPPING Ports , and understanding them should be part of your investment process.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.