Stock Analysis

What You Need To Know About Delta Electronics, Inc.'s (TPE:2308) Investor Composition

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TWSE:2308
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Every investor in Delta Electronics, Inc. (TPE:2308) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Warren Buffett said that he likes "a business with enduring competitive advantages that is run by able and owner-oriented people." So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.

With a market capitalization of NT$729b, Delta Electronics is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below, we can see that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about Delta Electronics.

Check out our latest analysis for Delta Electronics

ownership-breakdown
TSEC:2308 Ownership Breakdown February 9th 2021

What Does The Institutional Ownership Tell Us About Delta Electronics?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

We can see that Delta Electronics does have institutional investors; and they hold a good portion of the company's stock. 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 Delta Electronics' earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
TSEC:2308 Earnings and Revenue Growth February 9th 2021

Hedge funds don't have many shares in Delta Electronics. Deico International Limited is currently the largest shareholder, with 10% of shares outstanding. In comparison, the second and third largest shareholders hold about 4.1% and 2.7% of the stock. Chong Cheng, who is the second-largest shareholder, also happens to hold the title of Top Key Executive. Additionally, the company's CEO Ping Cheng directly holds 2.1% 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 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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Delta Electronics

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 Delta Electronics, Inc.. It is a very large company, and board members collectively own NT$61b 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 -- mostly retail investors -- own 55% of Delta Electronics. This size of ownership gives retail investors collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

We can see that Private Companies own 10%, 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 Delta Electronics better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Delta Electronics you should know about.

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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About TWSE:2308

Delta Electronics

Delta Electronics, Inc., together with its subsidiaries, provides power and thermal management solutions in Mainland China, the United States, Taiwan, Thailand, and internationally.

Flawless balance sheet with reasonable growth potential.

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