Public companies in ASROCK Incorporation (TWSE:3515) are its biggest bettors, and their bets paid off as stock gained 7.0% last week

Key Insights

• Significant control over ASROCK Incorporation by public companies implies that the general public has more power to influence management and governance-related decisions
• 55% of the company is held by a single shareholder (Pegatron Corporation)
• Institutions own 14% of ASROCK Incorporation

To get a sense of who is truly in control of ASROCK Incorporation (TWSE:3515), it is important to understand the ownership structure of the business. With 47% stake, public companies possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies were the biggest beneficiaries of last week’s 7.0% gain.

In the chart below, we zoom in on the different ownership groups of ASROCK Incorporation.

View our latest analysis for ASROCK Incorporation

What Does The Institutional Ownership Tell Us About ASROCK Incorporation?

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.

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

Hedge funds don't have many shares in ASROCK Incorporation. Pegatron Corporation is currently the largest shareholder, with 55% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 5.3% and 3.0% of the shares outstanding respectively, HongHong Investment Co., Ltd. and Norges Bank Investment Management are the second and third largest shareholders.

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 ASROCK Incorporation

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

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.

We can report that insiders do own shares in ASROCK Incorporation. In their own names, insiders own NT$1.7b worth of stock in the NT$28b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 22% stake in ASROCK Incorporation. 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.

Private Company Ownership

It seems that Private Companies own 11%, of the ASROCK Incorporation 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.

Public Company Ownership

It appears to us that public companies own 47% of ASROCK Incorporation. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand ASROCK Incorporation better, we need to consider many other factors. Take risks for example - ASROCK Incorporation has 2 warning signs we think you should be aware of.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its 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.

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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.