Key Insights
- Significant control over COSCO SHIPPING Ports by public companies implies that the general public has more power to influence management and governance-related decisions
- 67% of the company is held by a single shareholder (COSCO SHIPPING Holdings Co., Ltd.)
- Institutional ownership in COSCO SHIPPING Ports is 13%
A look at the shareholders of COSCO SHIPPING Ports Limited (HKG:1199) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are public companies with 67% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And individual investors on the other hand have a 20% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about COSCO SHIPPING Ports.
Check out our latest analysis for COSCO SHIPPING Ports
What Does The Institutional Ownership Tell Us About COSCO SHIPPING Ports?
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.
COSCO SHIPPING Ports 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. 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 COSCO SHIPPING Ports' earnings history below. Of course, the future is what really matters.
COSCO SHIPPING Ports is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is COSCO SHIPPING Holdings Co., Ltd. with 67% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Silchester International Investors LLP is the second largest shareholder owning 4.7% of common stock, and BlackRock, Inc. holds about 1.4% of the company 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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of COSCO SHIPPING Ports
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.
Our data suggests that insiders own under 1% of COSCO SHIPPING Ports Limited in their own names. It's a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own HK$5.0m 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
The general public, who are usually individual investors, hold a 20% stake in COSCO SHIPPING Ports. 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
We can see that public companies hold 67% of the COSCO SHIPPING Ports shares on issue. 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. For example, we've discovered 2 warning signs for COSCO SHIPPING Ports that you should be aware of before investing here.
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.