Individual investors own 23% of Nanya Technology Corporation (TWSE:2408) shares but public companies control 62% of the company

Key Insights

• The considerable ownership by public companies in Nanya Technology indicates that they collectively have a greater say in management and business strategy
• The top 3 shareholders own 51% of the company
• Institutional ownership in Nanya Technology is 14%

A look at the shareholders of Nanya Technology Corporation (TWSE:2408) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 62% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 23% ownership in the company.

Let's take a closer look to see what the different types of shareholders can tell us about Nanya Technology.

View our latest analysis for Nanya Technology

What Does The Institutional Ownership Tell Us About Nanya Technology?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

Nanya Technology 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. 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 Nanya Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Nanya Technology. Our data shows that Nan Ya Plastics Corporation is the largest shareholder with 29% of shares outstanding. The second and third largest shareholders are Formosa Plastics Corporation and Formosa Chemicals & Fibre Corporation, with an equal amount of shares to their name at 11%.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 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 Nanya Technology

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.

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.

Our most recent data indicates that insiders own less than 1% of Nanya Technology Corporation. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own NT$158m worth of shares. 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 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Nanya Technology. 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.

Public Company Ownership

We can see that public companies hold 62% of the Nanya Technology shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Nanya Technology you should know about.

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.

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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.