Key Insights
- BOC Hong Kong (Holdings)'s significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- The largest shareholder of the company is Bank of China Limited with a 66% stake
- Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
Every investor in BOC Hong Kong (Holdings) Limited (HKG:2388) should be aware of the most powerful shareholder groups. With 66% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, public companies collectively scored the highest last week as the company hit HK$246b market cap following a 6.3% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about BOC Hong Kong (Holdings).
Check out our latest analysis for BOC Hong Kong (Holdings)
What Does The Institutional Ownership Tell Us About BOC Hong Kong (Holdings)?
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 BOC Hong Kong (Holdings). 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at BOC Hong Kong (Holdings)'s earnings history below. Of course, the future is what really matters.
BOC Hong Kong (Holdings) is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Bank of China Limited with 66% of shares outstanding. This implies that they have majority interest control of the future of the company. In comparison, the second and third largest shareholders hold about 1.4% and 1.3% of the stock.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of BOC Hong Kong (Holdings)
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.
We note our data does not show any board members holding shares, personally. We do not see this low level of ownership often, and it is possible our data is imperfect. But shareholders can click here to check if insiders have been selling stock.
General Public Ownership
The general public, who are usually individual investors, hold a 25% stake in BOC Hong Kong (Holdings). 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.
Public Company Ownership
Public companies currently own 66% of BOC Hong Kong (Holdings) 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:
It's always worth thinking about the different groups who own shares in a company. But to understand BOC Hong Kong (Holdings) better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with BOC Hong Kong (Holdings) , and understanding them should be part of your investment process.
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.