Fubon Financial Holding Co., Ltd. (TWSE:2881) stock most popular amongst retail investors who own 43%, while private companies hold 22%

Key Insights

• Significant control over Fubon Financial Holding by retail investors implies that the general public has more power to influence management and governance-related decisions
• 51% of the business is held by the top 13 shareholders
• 16% of Fubon Financial Holding is held by Institutions

If you want to know who really controls Fubon Financial Holding Co., Ltd. (TWSE:2881), then you'll have to look at the makeup of its share registry. We can see that retail investors own the lion's share in the company with 43% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Meanwhile, private companies make up 22% of the company’s shareholders.

In the chart below, we zoom in on the different ownership groups of Fubon Financial Holding.

See our latest analysis for Fubon Financial Holding

What Does The Institutional Ownership Tell Us About Fubon Financial Holding?

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.

Fubon Financial Holding already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Fubon Financial Holding's earnings history below. Of course, the future is what really matters.

Hedge funds don't have many shares in Fubon Financial Holding. Looking at our data, we can see that the largest shareholder is Taipei City Government with 13% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.3% and 7.6%, of the shares outstanding, respectively.

A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 51% implying that no single shareholder has a majority.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Fubon Financial Holding

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.

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.

Shareholders would probably be interested to learn that insiders own shares in Fubon Financial Holding Co., Ltd.. Insiders own NT$76b worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 43% stake in Fubon Financial Holding. 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

We can see that Private Companies own 22%, of the shares on issue. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Fubon Financial Holding better, we need to consider many other factors. For example, we've discovered 2 warning signs for Fubon Financial Holding (1 shouldn't be ignored!) that you should be aware of before investing here.

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.