Far EasTone Telecommunications Co., Ltd.'s (TWSE:4904) largest shareholders are public companies with 35% ownership, individual investors own 32%

Key Insights

• The considerable ownership by public companies in Far EasTone Telecommunications indicates that they collectively have a greater say in management and business strategy
• A total of 5 investors have a majority stake in the company with 53% ownership
• Institutional ownership in Far EasTone Telecommunications is 30%

To get a sense of who is truly in control of Far EasTone Telecommunications Co., Ltd. (TWSE:4904), it is important to understand the ownership structure of the business. We can see that public companies own the lion's share in the company with 35% ownership. Put another way, the group faces the maximum upside potential (or downside risk).

And individual investors on the other hand have a 32% ownership in the company.

In the chart below, we zoom in on the different ownership groups of Far EasTone Telecommunications.

View our latest analysis for Far EasTone Telecommunications

What Does The Institutional Ownership Tell Us About Far EasTone Telecommunications?

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.

Far EasTone Telecommunications already has institutions on the share registry. Indeed, they own a respectable stake in the company. 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. 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 Far EasTone Telecommunications, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in Far EasTone Telecommunications. Our data shows that Far Eastern New Century Corporation is the largest shareholder with 35% of shares outstanding. With 6.2% and 6.0% of the shares outstanding respectively, Shin Kong Investment Trust Co., Ltd. and Cathay Life Insurance Co., Ltd., Asset Management Arm are the second and third largest shareholders.

Our research also brought to light the fact that roughly 53% of the company is controlled by the top 5 shareholders suggesting that these owners wield significant influence on the business.

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

Insider Ownership Of Far EasTone Telecommunications

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own less than 1% of Far EasTone Telecommunications Co., Ltd.. But they may have an indirect interest through a corporate structure that we haven't picked up on. As it is a large company, we'd only expect insiders to own a small percentage of it. But it's worth noting that they own NT$15m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

With a 32% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Far EasTone Telecommunications. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Public Company Ownership

Public companies currently own 35% of Far EasTone Telecommunications stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. To that end, you should be aware of the 3 warning signs we've spotted with Far EasTone Telecommunications .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter 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.