Stock Analysis

Individual investors among Chenbro Micom Co., Ltd.'s (TWSE:8210) largest shareholders, saw gain in holdings value after stock jumped 9.6% last week

Published
TWSE:8210

Key Insights

  • Chenbro Micom's significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • 53% of the business is held by the top 6 shareholders
  • 26% of Chenbro Micom is held by insiders

If you want to know who really controls Chenbro Micom Co., Ltd. (TWSE:8210), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual investors with 34% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

Clearly, individual investors benefitted the most after the company's market cap rose by NT$3.0b last week.

Let's delve deeper into each type of owner of Chenbro Micom, beginning with the chart below.

See our latest analysis for Chenbro Micom

TWSE:8210 Ownership Breakdown March 5th 2024

What Does The Institutional Ownership Tell Us About Chenbro Micom?

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.

As you can see, institutional investors have a fair amount of stake in Chenbro Micom. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Chenbro Micom's historic earnings and revenue below, but keep in mind there's always more to the story.

TWSE:8210 Earnings and Revenue Growth March 5th 2024

Chenbro Micom is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Feng-Ming Chen with 11% of shares outstanding. Pengwei Investment and Development Co., Ltd. is the second largest shareholder owning 10% of common stock, and Lianmei Investment Co., Ltd. holds about 9.8% of the company stock.

We did some more digging and found that 6 of the top shareholders account for roughly 53% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

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 a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Chenbro Micom

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. 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.

It seems insiders own a significant proportion of Chenbro Micom Co., Ltd.. It is very interesting to see that insiders have a meaningful NT$8.8b stake in this NT$34b business. 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, who are usually individual investors, hold a 34% stake in Chenbro Micom. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 27%, of the Chenbro Micom 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:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Chenbro Micom 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.