Do Institutions Own Cathay Real Estate Development Co.,Ltd. (TPE:2501) Shares?

A look at the shareholders of Cathay Real Estate Development Co.,Ltd. (TPE:2501) can tell us which group is most powerful. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

With a market capitalization of NT$24b, Cathay Real Estate DevelopmentLtd is a decent size, so it is probably on the radar of institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about Cathay Real Estate DevelopmentLtd.

Check out our latest analysis for Cathay Real Estate DevelopmentLtd

What Does The Institutional Ownership Tell Us About Cathay Real Estate DevelopmentLtd?

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

We note that hedge funds don't have a meaningful investment in Cathay Real Estate DevelopmentLtd. The company's largest shareholder is Cathay Life Insurance Employee Pension Fund Administration Committee, with ownership of 25%. For context, the second largest shareholder holds about 18% of the shares outstanding, followed by an ownership of 2.1% by the third-largest shareholder.

On further inspection, we found that more than half the company's shares are owned by the top 8 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.

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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.

Insider Ownership Of Cathay Real Estate DevelopmentLtd

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 Cathay Real Estate Development Co.,Ltd.. But they may have an indirect interest through a corporate structure that we haven't picked up on. It has a market capitalization of just NT$24b, and the board has only NT$670k worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 49% ownership, the general public have some degree of sway over Cathay Real Estate DevelopmentLtd. 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.

Private Company Ownership

It seems that Private Companies own 20%, of the Cathay Real Estate DevelopmentLtd 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.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Cathay Real Estate DevelopmentLtd better, we need to consider many other factors. Be aware that Cathay Real Estate DevelopmentLtd is showing 3 warning signs in our investment analysis , and 2 of those are significant...

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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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