What You Need To Know About Synnex Technology International Corporation's (TPE:2347) Investor Composition

By
Simply Wall St
Published
February 11, 2021
TWSE:2347
Source: Shutterstock

The big shareholder groups in Synnex Technology International Corporation (TPE:2347) have power over the company. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

With a market capitalization of NT$78b, Synnex Technology International is a decent size, so it is probably on the radar of institutional investors. 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 Synnex Technology International.

View our latest analysis for Synnex Technology International

ownership-breakdown
TSEC:2347 Ownership Breakdown February 11th 2021

What Does The Institutional Ownership Tell Us About Synnex Technology International?

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.

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

earnings-and-revenue-growth
TSEC:2347 Earnings and Revenue Growth February 11th 2021

Synnex Technology International is not owned by hedge funds. MiTAC Inc. is currently the company's largest shareholder with 14% of shares outstanding. BlackRock, Inc. is the second largest shareholder owning 4.1% of common stock, and Yuanta Securities Investment Trust Co., Ltd. holds about 3.9% of the company stock. Furthermore, CEO Shu-Wu Tu is the owner of 2.3% of the company's shares.

On studying our ownership data, we found that 25 of the top shareholders collectively own less than 50% of the share register, implying that no single individual has a majority interest.

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

Insider Ownership Of Synnex Technology International

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 some shares in Synnex Technology International Corporation. This is a big company, so it is good to see this level of alignment. Insiders own NT$3.3b worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public -- mostly retail investors -- own 59% of Synnex Technology International. 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

It seems that Private Companies own 14%, of the Synnex Technology International 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 Synnex Technology International better, we need to consider many other factors. For instance, we've identified 2 warning signs for Synnex Technology International (1 makes us a bit uncomfortable) that 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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