Stock Analysis

What Kind Of Investors Own Most Of Global Brands Manufacture Ltd. (TPE:6191)?

TWSE:6191
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Every investor in Global Brands Manufacture Ltd. (TPE:6191) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

Global Brands Manufacture is a smaller company with a market capitalization of NT$12b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. Let's delve deeper into each type of owner, to discover more about Global Brands Manufacture.

See our latest analysis for Global Brands Manufacture

ownership-breakdown
TSEC:6191 Ownership Breakdown December 3rd 2020

What Does The Institutional Ownership Tell Us About Global Brands Manufacture?

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.

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

earnings-and-revenue-growth
TSEC:6191 Earnings and Revenue Growth December 3rd 2020

Hedge funds don't have many shares in Global Brands Manufacture. Looking at our data, we can see that the largest shareholder is HannStar Board Corp. with 41% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 1.7% and 1.6%, of the shares outstanding, respectively.

On studying our ownership data, we found that 13 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. While there is some analyst coverage, the company is probably not widely covered. So it could gain more attention, down the track.

Insider Ownership Of Global Brands Manufacture

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

We can see that insiders own shares in Global Brands Manufacture Ltd.. In their own names, insiders own NT$225m worth of stock in the NT$12b 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 -- mostly retail investors -- own 53% of Global Brands Manufacture. 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 41% of Global Brands Manufacture. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Global Brands Manufacture better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Global Brands Manufacture you should be aware of.

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. 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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