Each investor of COSCO SHIPPING Holdings Co., Ltd. (HKG:1919) must know the most powerful shareholder groups. With a 50% stake, private companies own the most shares in the company. In other words, the group is likely to gain the most (or lose the most) from its investment in the business.
Meanwhile, individual investors represent 36% of the company’s shareholders.
Let’s dive deeper into each type of COSCO SHIPPING Holdings owner, starting with the table below.
See our latest analysis for COSCO SHIPPING Holdings
What does institutional ownership tell us about COSCO SHIPPING Holdings?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.
We can see that COSCO SHIPPING Holdings has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. When multiple institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes wrong, multiple parties may compete to quickly sell shares. This risk is higher in a company with no history of growth. You can see COSCO SHIPPING Holdings’ historic earnings and revenue below, but keep in mind there’s always more to tell.
Hedge funds do not have many shares in COSCO SHIPPING Holdings. Looking at our data, we can see that the major shareholder is China COSCO SHIPPING Corporation Limited with 47% of the outstanding shares. China Baowu Steel Group Corporation Limited is the second largest shareholder with 2.0% of common shares, and Guoxin Yangqi Operation Investment Fund Management (Guangzhou) Co., Ltd. owns approximately 0.5% of the company’s shares.
To make our study more interesting, we found that the top 5 shareholders control more than half of the company, which implies that this group has considerable influence on the decision-making of the company.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. A number of analysts cover the stock, so you can look at growth forecasts quite easily.
Insider Ownership of COSCO SHIPPING Holdings
The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
Insider ownership is positive when it signals that executives think like the true owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.
Our data suggests that insiders own less than 1% of COSCO SHIPPING Holdings Co., Ltd. in their own name. We note, however, that insiders may have an indirect interest through a private company or other corporate structure. Being so large, we wouldn’t expect insiders to own a large portion of the shares. Collectively, they own HK$669 million worth of shares. Arguably, recent purchases and sales are equally important to consider. You can click here to see if insiders have been buying or selling.
General public property
With a 36% stake, the general public, consisting mainly of individual investors, has some influence over COSCO SHIPPING Holdings. This size of ownership, although considerable, may not be sufficient to change company policy if the decision is not in line with other large shareholders.
Private Company Ownership
We can see that private companies hold 50% of the issued shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as individuals. Although it is difficult to draw general conclusions, it should be noted that this is an area for further research.
While it is worth considering the different groups that own a business, there are other, even more important factors. To do this, you need to find out about the 3 warning signs we spotted some with COSCO SHIPPING Holdings (including 1 which is a little unpleasant).
But finally it’s the future, not the past, which will determine the performance of the owners of this company. Therefore, we think it’s advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.