This is what the shareholding structure of Great Wall Motor Company Limited looks like (HKG: 2333)
A look at the shareholders of Great Wall Motor Company Limited (HKG: 2333) can tell us which group is more powerful. Generally speaking, as a business grows, institutions increase their participation. Conversely, insiders often decrease their ownership over time. Companies that were previously owned by the state tend to have fewer insiders.
Great Wall Motor has a market cap of HK $ 518 billion, so it’s too big to go unnoticed. We expect institutions and retail investors to own a portion of the company. Looking at our data on ownership groups (below), it appears that institutions are visible on the share register. We can zoom in on the different ownership groups, to find out more about Great Wall Motor.
See our latest review for Great Wall Motor
What does institutional ownership tell us about Great Wall Motor?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
We can see that Great Wall Motor has institutional investors; and they own a large portion of the company’s shares. This may indicate that the company has a certain degree of credibility in the investment community. However, it is best not to rely on the so-called validation that comes with institutional investors. They too are sometimes wrong. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Great Wall Motor’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of shares in Great Wall Motor. Baoding Great Wall Holdings Company Limited is currently the largest shareholder in the company with 56% of the shares outstanding. Essentially, this means that they have considerable influence, if not absolute control, over the future of the business. China Securities Finance Corp, Asset Management Arm is the second largest shareholder with 2.1% of the common stock, and BlackRock, Inc. owns about 1.8% of the company’s stock.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Great Wall Motor Insider Property
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders own less than 1% of Great Wall Motor Company Limited. We note, however, that it is possible that insiders may have an indirect interest through a private company or other corporate structure. Since this is a large company, we would expect insiders to own only a small percentage. But it should be noted that they own shares worth HK $ 226 million. Arguably recent purchases and sales are just as important to consider. You can click here to see if any insiders have bought or sold.
General public property
The general public has a 27% stake in Great Wall Motor. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
Our data indicates that private companies own 56% of the company’s shares. It may be worth exploring this topic further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Concrete example: we have spotted 2 warning signs for Great Wall Motor you must be aware.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St does not have any position in the mentioned stocks.
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