Key Insights
- The considerable ownership by public companies in Yangtze Optical Fibre And Cable Limited indicates that they collectively have a greater say in management and business strategy
- A total of 3 investors have a majority stake in the company with 63% ownership
- Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
Every investor in Yangtze Optical Fibre And Cable Joint Stock Limited Company (HKG:6869) should be aware of the most powerful shareholder groups. With 40% stake, public companies possess the maximum shares in the company. Put another way, the group faces the maximum upside potential (or downside risk).
And individual investors on the other hand have a 30% ownership in the company.
Let's take a closer look to see what the different types of shareholders can tell us about Yangtze Optical Fibre And Cable Limited.
View our latest analysis for Yangtze Optical Fibre And Cable Limited
What Does The Institutional Ownership Tell Us About Yangtze Optical Fibre And Cable Limited?
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 Yangtze Optical Fibre And Cable Limited. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Yangtze Optical Fibre And Cable Limited's historic earnings and revenue below, but keep in mind there's always more to the story.
Yangtze Optical Fibre And Cable Limited is not owned by hedge funds. The company's largest shareholder is Prysmian S.p.A., with ownership of 24%. In comparison, the second and third largest shareholders hold about 24% and 16% of the stock.
A more detailed study of the shareholder registry showed us that 3 of the top shareholders have a considerable amount of ownership in the company, via their 63% stake.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Yangtze Optical Fibre And Cable Limited
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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 less than 1% of Yangtze Optical Fibre And Cable Joint Stock Limited Company. But they may have an indirect interest through a corporate structure that we haven't picked up on. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around HK$32m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.
General Public Ownership
With a 30% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Yangtze Optical Fibre And Cable Limited. 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.
Private Company Ownership
Our data indicates that Private Companies hold 25%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
Public Company Ownership
It appears to us that public companies own 40% of Yangtze Optical Fibre And Cable Limited. 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:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Yangtze Optical Fibre And Cable Limited you should know about.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.