Key Insights

• Significant control over HKT Trust and HKT by public companies implies that the general public has more power to influence management and governance-related decisions
• 53% of the company is held by a single shareholder (PCCW Limited)
• 12% of HKT Trust and HKT is held by Institutions

To get a sense of who is truly in control of HKT Trust and HKT Limited (HKG:6823), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 53% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Individual investors, on the other hand, account for 34% of the company's stockholders.

Let's take a closer look to see what the different types of shareholders can tell us about HKT Trust and HKT.

What Does The Institutional Ownership Tell Us About HKT Trust and HKT?

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.

We can see that HKT Trust and HKT does have institutional investors; and they hold a good portion of the company's stock. 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. 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 HKT Trust and HKT's historic earnings and revenue below, but keep in mind there's always more to the story.

HKT Trust and HKT is not owned by hedge funds. The company's largest shareholder is PCCW Limited, with ownership of 53%. This implies that they have majority interest control of the future of the company. Meanwhile, the second and third largest shareholders, hold 1.9% and 1.7%, of the shares outstanding, respectively.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of HKT Trust and HKT

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 HKT Trust and HKT Limited. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own HK$728m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.

General Public Ownership

The general public-- including retail investors -- own 34% stake in the company, and hence can't easily be ignored. 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.

Public Company Ownership

It appears to us that public companies own 53% of HKT Trust and HKT. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand HKT Trust and HKT better, we need to consider many other factors. Take risks for example - HKT Trust and HKT 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.