Painful week for retail investors invested in Foxsemicon Integrated Technology Inc. (TWSE:3413) after 10% drop, institutions also suffered losses

Key Insights

• Significant control over Foxsemicon Integrated Technology by retail investors implies that the general public has more power to influence management and governance-related decisions
• 46% of the business is held by the top 25 shareholders
• Institutional ownership in Foxsemicon Integrated Technology is 23%

A look at the shareholders of Foxsemicon Integrated Technology Inc. (TWSE:3413) can tell us which group is most powerful. We can see that retail investors own the lion's share in the company with 53% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

While institutions who own 23% came under pressure after market cap dropped to NT$28b last week,retail investors took the most losses.

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

View our latest analysis for Foxsemicon Integrated Technology

What Does The Institutional Ownership Tell Us About Foxsemicon Integrated Technology?

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.

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

We note that hedge funds don't have a meaningful investment in Foxsemicon Integrated Technology. Applied Materials, Inc. is currently the company's largest shareholder with 8.3% of shares outstanding. Hyield Venture Capital Co., Ltd. is the second largest shareholder owning 7.1% of common stock, and Hon Hai Precision Industry Co., Ltd. holds about 5.1% of the company stock.

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

Insider Ownership Of Foxsemicon Integrated Technology

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.

Our data suggests that insiders own under 1% of Foxsemicon Integrated Technology Inc. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It appears that the board holds about NT$133m worth of stock. This compares to a market capitalization of NT$28b. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.

General Public Ownership

The general public -- including retail investors -- own 53% of Foxsemicon Integrated Technology. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.

Private Equity Ownership

With a stake of 7.1%, private equity firms could influence the Foxsemicon Integrated Technology board. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public.

Public Company Ownership

We can see that public companies hold 13% of the Foxsemicon Integrated 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 2 warning signs for Foxsemicon Integrated Technology you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.