While institutions own 20% of COSCO SHIPPING Ports Limited (HKG:1199), public companies are its largest shareholders with 64% ownership

Key Insights

• COSCO SHIPPING Ports' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
• COSCO SHIPPING Holdings Co., Ltd. owns 64% of the company
• Institutions own 20% of COSCO SHIPPING Ports

To get a sense of who is truly in control of COSCO SHIPPING Ports Limited (HKG:1199), it is important to understand the ownership structure of the business. With 64% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).

Institutions, on the other hand, account for 20% of the company's stockholders. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time.

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?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in COSCO SHIPPING Ports. 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 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. Our data shows that COSCO SHIPPING Holdings Co., Ltd. is the largest shareholder with 64% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. With 6.9% and 2.1% of the shares outstanding respectively, Silchester International Investors LLP and BlackRock, Inc. 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of COSCO SHIPPING Ports

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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$6.0m 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 16% ownership, the general public, mostly comprising of individual investors, have some degree of sway over COSCO SHIPPING Ports. 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

We can see that public companies hold 64% of the COSCO SHIPPING Ports shares on issue. 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 be aware of the 2 warning signs we've spotted with COSCO SHIPPING Ports .

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.