Evergreen Marine Corporation (Taiwan) Ltd.'s (TWSE:2603) market cap touched NT$405b last week, benefiting both retail investors who own 59% as well as institutions

Key Insights

• Evergreen Marine Corporation (Taiwan)'s significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 25 shareholders own 38% of the company
• Insiders own 11% of Evergreen Marine Corporation (Taiwan)

To get a sense of who is truly in control of Evergreen Marine Corporation (Taiwan) Ltd. (TWSE:2603), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 59% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

While retail investors were the group that benefitted the most from last week’s NT$20b market cap gain, institutions too had a 17% share in those profits.

Let's take a closer look to see what the different types of shareholders can tell us about Evergreen Marine Corporation (Taiwan).

Check out our latest analysis for Evergreen Marine Corporation (Taiwan)

What Does The Institutional Ownership Tell Us About Evergreen Marine Corporation (Taiwan)?

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.

Evergreen Marine Corporation (Taiwan) 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. 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 Evergreen Marine Corporation (Taiwan)'s historic earnings and revenue below, but keep in mind there's always more to the story.

Hedge funds don't have many shares in Evergreen Marine Corporation (Taiwan). The company's largest shareholder is Kuo-Hua Chang, with ownership of 11%. Meanwhile, the second and third largest shareholders, hold 7.3% and 3.7%, of the shares outstanding, respectively.

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.

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 Evergreen Marine Corporation (Taiwan)

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.

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.

Our most recent data indicates that insiders own a reasonable proportion of Evergreen Marine Corporation (Taiwan) Ltd.. It is very interesting to see that insiders have a meaningful NT$46b stake in this NT$405b 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 substantial 59% stake in Evergreen Marine Corporation (Taiwan), suggesting it is a fairly popular stock. This level of ownership gives investors from the wider public some power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Private Company Ownership

Our data indicates that Private Companies hold 12%, of the company's shares. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the 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. For example, we've discovered 3 warning signs for Evergreen Marine Corporation (Taiwan) (1 is concerning!) that you should be aware of before investing here.

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.