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Hutchison Telecommunications Hong Kong Holdings Limited's (HKG:215) Biggest Owners Are Public Companies Who Got Richer After Stock Soared 8.8% Last Week

Simply Wall St ·  Sep 26, 2022 18:50

Every investor in Hutchison Telecommunications Hong Kong Holdings Limited (HKG:215) should be aware of the most powerful shareholder groups. And the group that holds the biggest piece of the pie are public companies with 66% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, public companies collectively scored the highest last week as the company hit HK$6.0b market cap following a 8.8% gain in the stock.

Let's take a closer look to see what the different types of shareholders can tell us about Hutchison Telecommunications Hong Kong Holdings.

See our latest analysis for Hutchison Telecommunications Hong Kong Holdings

ownership-breakdownSEHK:215 Ownership Breakdown September 26th 2022

What Does The Institutional Ownership Tell Us About Hutchison Telecommunications Hong Kong Holdings?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors have a fair amount of stake in Hutchison Telecommunications Hong Kong Holdings. 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 Hutchison Telecommunications Hong Kong Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

earnings-and-revenue-growthSEHK:215 Earnings and Revenue Growth September 26th 2022

Hutchison Telecommunications Hong Kong Holdings is not owned by hedge funds. CK Hutchison Holdings Limited is currently the company's largest shareholder with 66% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. Li Ka Shing Foundation Ltd, Endowment Arm is the second largest shareholder owning 7.3% of common stock, and Dimensional Fund Advisors LP holds about 1.1% of the company stock.

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. 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. 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.

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 see that insiders own shares in Hutchison Telecommunications Hong Kong Holdings Limited. As individuals, the insiders collectively own HK$82m worth of the HK$6.0b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 22% stake in the company, and hence can't easily be ignored. 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

Public companies currently own 66% of Hutchison Telecommunications Hong Kong Holdings stock. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Hutchison Telecommunications 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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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