Key Insights
- China Aircraft Leasing Group Holdings' significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- 62% of the business is held by the top 2 shareholders
- Institutions own 25% of China Aircraft Leasing Group Holdings
Every investor in China Aircraft Leasing Group Holdings Limited (HKG:1848) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are private companies with 38% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Clearly, private companies benefitted the most after the company's market cap rose by HK$276m last week.
Let's take a closer look to see what the different types of shareholders can tell us about China Aircraft Leasing Group Holdings.
View our latest analysis for China Aircraft Leasing Group Holdings
What Does The Institutional Ownership Tell Us About China Aircraft Leasing Group 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's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
China Aircraft Leasing Group Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 China Aircraft Leasing Group Holdings' earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in China Aircraft Leasing Group Holdings. China Everbright Group Ltd. is currently the largest shareholder, with 38% of shares outstanding. For context, the second largest shareholder holds about 24% of the shares outstanding, followed by an ownership of 2.3% by the third-largest shareholder. Ho Man Poon, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.
A more detailed study of the shareholder registry showed us that 2 of the top shareholders have a considerable amount of ownership in the company, via their 62% stake.
Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of China Aircraft Leasing Group Holdings
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
We can see that insiders own shares in China Aircraft Leasing Group Holdings Limited. In their own names, insiders own HK$102m worth of stock in the HK$2.6b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 33% stake in China Aircraft Leasing Group 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.
Private Company Ownership
It seems that Private Companies own 38%, of the China Aircraft Leasing Group Holdings stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand China Aircraft Leasing Group Holdings better, we need to consider many other factors. For example, we've discovered 2 warning signs for China Aircraft Leasing Group Holdings 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.