Key Insights
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Retail investors’ large ownership in Houghton Investment Holdings gives them a greater say in the management and business strategy.
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A total of 15 investors hold 40% of the company’s shares.
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Combining a company’s past performance data with ownership research can help you better assess a company’s future performance.
Investors in Hotung Investment Holdings Limited (SGX:BLS) should be aware of the most powerful shareholder groups. The group that holds the largest amount of shares in the company (about 60% to be exact) are retail investors, which means they are the group that will gain the most if the share price rises (or lose the most if the share price falls).
Meanwhile, 20% of the company’s shareholders are private companies.
Let’s take a closer look at each type of owner for Hotung Investment Holdings in the table below.
Check out our latest analysis for Hotung Investment Holdings
What does institutional ownership tell us about Hotung Investment Holdings?
Institutions typically compare their own performance against a benchmark when reporting to their own investors, so when a stock is included in a major index, they often increase their interest in that stock. You can expect most companies to have some institutional investors on the register, especially if they are growing.
We can see that Hotung Investment Holdings has institutional investors, who hold a significant percentage of the company’s shares. This may indicate that the company has some credibility in the investment community. However, it’s best to be careful about relying on the approval of institutional investors; they get it wrong sometimes, too. When multiple institutions own shares, there’s always a risk that they’ll get caught in a ‘crowded trade’. If such a trade goes wrong, multiple parties may compete to sell shares fast. This risk is higher in companies without a history of growth. You can see Hotung Investment Holdings’ historic earnings and revenue below, but remember, there’s always more to the story.
It should be noted that hedge funds don’t have much of an investment in Hotung Investment Holdings. Looking at the data, we can see that the largest shareholder is Tai Lung Capital Inc. with 18% of shares outstanding. In comparison, the second and third largest shareholders hold about 6.4% and 5.6% of the stock respectively. Additionally, CEO Tsui-Hui Huang owns 1.4% of the company’s shares.
After studying the ownership data, we found that the top 15 shareholders collectively own less than 50% of the share register, meaning that no single individual holds the majority of the shares.
While studying institutional ownership for a company can add value to your research, it is also a good idea to research analyst recommendations to get a deeper understand of a stock’s expected performance. Our information shows that there is no analyst coverage of this stock, so it may not be very well known.
Insider Ownership of Houghton Investment Holdings
The definition of a company insider can be subjective and varies between jurisdictions. Our data reflects individual insiders, and includes, at a minimum, directors. Company management should report to the board of directors, which should represent the interests of shareholders. Notably, top-level management may themselves sit on the board.
I generally consider insider ownership to be a good thing, but in some cases it can make it difficult for other shareholders to hold the board to account for decisions.
Our most recent data shows that insiders own some shares in Hotung Investment Holdings Limited. The company has a market capitalization of just S$138m, but insiders have S$9.7m worth of shares in their own names. This suggests at least some consistency, but we usually like to see higher insider holdings. To see if insiders have been buying or selling, click here.
General public property
The general public, usually retail investors, hold 60% of Hotung Investment Holdings’ shares, indicating that it is a fairly popular stock. With this level of ownership, general public investors have the power to influence important policy decisions such as board composition, executive compensation, and dividend payout ratios.
Private Equity Ownership
With a 5.6% stake, the private equity firm can influence Hotung Investment Holdings’ board of directors. Some may like this, as private equity can sometimes be activists holding management to account, but private equity can also sell off by going public.
Private Ownership
It appears that private companies own 20% of Hotung Investment Holdings, so this may be worth investigating further. If related parties (e.g. insiders) have an interest in one of these private companies, that should be disclosed in the annual report. It’s also possible that the private company has a strategic interest in the company.
Next steps:
It’s always worth thinking about the different groups who own shares in a company. But to understand Hotung Investment Holdings better, there are many other factors to consider. For example, 2 warning signs for Houghton Investment Holdings (1 is important) Things you should know.
of course This may not be the best stock to buySo, take a look at this free free A list of interesting companies.
Note: The figures in this article are calculated using data from the last 12 months, which refers to the 12-month period ending on the last day of the month in which the financial statements are dated, which may not match the figures in the annual report.
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This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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