Stock Analysis

Hutchison Port Holdings Trust's (SGX:NS8U) market cap surged US$78m last week, retail investors who have a lot riding on the company were rewarded

SGX:NS8U
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Key Insights

  • Significant control over Hutchison Port Holdings Trust by retail investors implies that the general public has more power to influence management and governance-related decisions
  • The top 6 shareholders own 50% of the company
  • Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

A look at the shareholders of Hutchison Port Holdings Trust (SGX:NS8U) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are retail investors with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, retail investors benefitted the most after the company's market cap rose by US$78m last week.

Let's delve deeper into each type of owner of Hutchison Port Holdings Trust, beginning with the chart below.

See our latest analysis for Hutchison Port Holdings Trust

ownership-breakdown
SGX:NS8U Ownership Breakdown November 6th 2023

What Does The Institutional Ownership Tell Us About Hutchison Port Holdings Trust?

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

earnings-and-revenue-growth
SGX:NS8U Earnings and Revenue Growth November 6th 2023

Hedge funds don't have many shares in Hutchison Port Holdings Trust. The company's largest shareholder is CK Hutchison Holdings Limited, with ownership of 30%. In comparison, the second and third largest shareholders hold about 14% and 2.0% of the stock.

We did some more digging and found that 6 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 Port Holdings Trust

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own less than 1% of Hutchison Port Holdings Trust. However, it's possible that insiders might have an indirect interest through a more complex structure. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own US$440k worth of shares. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public-- including retail investors -- own 46% 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.

Private Company Ownership

It seems that Private Companies own 14%, of the Hutchison Port Holdings Trust stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

It appears to us that public companies own 30% of Hutchison Port Holdings Trust. 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. To that end, you should learn about the 3 warning signs we've spotted with Hutchison Port Holdings Trust (including 1 which is significant) .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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 helping make it simple.

Find out whether Hutchison Port Holdings Trust is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.