What You Need To Know About ChipMOS TECHNOLOGIES INC.'s (TPE:8150) Investor Composition

Every investor in ChipMOS TECHNOLOGIES INC. (TPE:8150) should be aware of the most powerful shareholder groups. 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.

ChipMOS TECHNOLOGIES has a market capitalization of NT$26b, so we would expect some institutional investors to have noticed the stock. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about ChipMOS TECHNOLOGIES.

View our latest analysis for ChipMOS TECHNOLOGIES

What Does The Institutional Ownership Tell Us About ChipMOS TECHNOLOGIES?

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.

As you can see, institutional investors have a fair amount of stake in ChipMOS TECHNOLOGIES. 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 ChipMOS TECHNOLOGIES, (below). Of course, keep in mind that there are other factors to consider, too.

ChipMOS TECHNOLOGIES is not owned by hedge funds. ASE Technology Holding Co., Ltd. is currently the company's largest shareholder with 20% of shares outstanding. Renaissance Technologies Corp. is the second largest shareholder owning 4.5% of common stock, and GIC Pte. Ltd. holds about 2.8% of the company stock. Additionally, the company's CEO Shih-Jye Cheng directly holds 0.9% of the total shares outstanding.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where 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 ChipMOS TECHNOLOGIES

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 some shares in ChipMOS TECHNOLOGIES INC.. As individuals, the insiders collectively own NT$298m worth of the NT$26b company. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling.

General Public Ownership

The general public, who are mostly retail investors, collectively hold 53% of ChipMOS TECHNOLOGIES shares. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Public Company Ownership

It appears to us that public companies own 20% of ChipMOS TECHNOLOGIES. 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - ChipMOS TECHNOLOGIES has 3 warning signs we think you should be aware of.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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. 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.
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