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What You Need To Know About Hutchison Telecommunications Hong Kong Holdings Limited's (HKG:215) Investor Composition

Simply Wall St ·  Jun 9, 2022 18:31

Every investor in Hutchison Telecommunications Hong Kong Holdings Limited (HKG:215) should be aware of the most powerful shareholder groups. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that used to be publicly owned tend to have lower insider ownership.

Hutchison Telecommunications Hong Kong Holdings isn't enormous, but it's not particularly small either. It has a market capitalization of HK$7.0b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholders can tell us about Hutchison Telecommunications Hong Kong Holdings.

View our latest analysis for Hutchison Telecommunications Hong Kong Holdings

SEHK:215 Ownership Breakdown June 9th 2022

What Does The Institutional Ownership Tell Us About Hutchison Telecommunications 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.

Hutchison Telecommunications Hong Kong Holdings 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 Hutchison Telecommunications Hong Kong Holdings' earnings history below. Of course, the future is what really matters.

SEHK:215 Earnings and Revenue Growth June 9th 2022

We note that hedge funds don't have a meaningful investment in Hutchison Telecommunications Hong Kong Holdings. CK Hutchison Holdings Limited is currently the company's largest shareholder with 66% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 7.3% of the shares outstanding, followed by an ownership of 1.2% by the third-largest shareholder.

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 Hutchison Telecommunications Hong Kong 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.

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 can report that insiders do own shares in Hutchison Telecommunications Hong Kong Holdings Limited. In their own names, insiders own HK$96m worth of stock in the HK$7.0b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

With a 21% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Hutchison Telecommunications Hong Kong Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Public Company Ownership

We can see that public companies hold 66% of the Hutchison Telecommunications Hong Kong Holdings shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Hutchison Telecommunications Hong Kong Holdings better, we need to consider many other factors. Take risks for example - Hutchison Telecommunications Hong Kong Holdings has 2 warning signs we think you should be aware of.

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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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