Public companies among COSCO SHIPPING Ports Limited's (HKG:1199) largest shareholders, saw gain in holdings value after stock jumped 5.5% last week
Key Insights
- COSCO SHIPPING Ports' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- 67% of the company is held by a single shareholder (COSCO SHIPPING Holdings Co., Ltd.)
- Institutional ownership in COSCO SHIPPING Ports is 12%
If you want to know who really controls COSCO SHIPPING Ports Limited (HKG:1199), then you'll have to look at the makeup of its share registry. We can see that public companies own the lion's share in the company with 67% ownership. Put another way, the group faces the maximum upside potential (or downside risk).
Clearly, public companies benefitted the most after the company's market cap rose by HK$865m last week.
Let's delve deeper into each type of owner of COSCO SHIPPING Ports, beginning with the chart below.
View 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.
COSCO SHIPPING Ports already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 COSCO SHIPPING Ports' earnings history below. Of course, the future is what really matters.
COSCO SHIPPING Ports is not owned by hedge funds. COSCO SHIPPING Holdings Co., Ltd. is currently the company's largest shareholder with 67% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. In comparison, the second and third largest shareholders hold about 4.7% and 1.7% of the stock.
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 COSCO SHIPPING Ports
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 COSCO SHIPPING Ports Limited. Keep in mind that it's a big company, and the insiders own HK$5.0m worth of shares. The absolute value might be more important than the proportional share. 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, who are usually individual investors, hold a 20% stake in COSCO SHIPPING Ports. 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 67% of COSCO SHIPPING Ports. 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for COSCO SHIPPING Ports you should know about.
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.
Valuation is complex, but we're here to simplify it.
Discover if COSCO SHIPPING Ports might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.