Key Insights
- CIMC Enric Holdings' significant public companies ownership suggests that the key decisions are influenced by shareholders from the larger public
- The largest shareholder of the company is China International Marine Containers (Group) Co., Ltd. with a 69% stake
- Institutional ownership in CIMC Enric Holdings is 11%
If you want to know who really controls CIMC Enric Holdings Limited (HKG:3899), then you'll have to look at the makeup of its share registry. With 69% stake, public companies possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As market cap fell to HK$14b last week, public companies would have faced the highest losses than any other shareholder groups of the company.
Let's take a closer look to see what the different types of shareholders can tell us about CIMC Enric Holdings.
What Does The Institutional Ownership Tell Us About CIMC Enric 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.
As you can see, institutional investors have a fair amount of stake in CIMC Enric 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. 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 CIMC Enric Holdings' earnings history below. Of course, the future is what really matters.
Hedge funds don't have many shares in CIMC Enric Holdings. China International Marine Containers (Group) Co., Ltd. is currently the largest shareholder, with 69% 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 1.3% of the shares outstanding, followed by an ownership of 1.2% by the third-largest shareholder.
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 CIMC Enric Holdings
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.
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.
Our data suggests that insiders own under 1% of CIMC Enric Holdings Limited in their own names. Keep in mind that it's a big company, and the insiders own HK$49m worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.
General Public Ownership
The general public, who are usually individual investors, hold a 19% stake in CIMC Enric Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Public Company Ownership
Public companies currently own 69% of CIMC Enric Holdings stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together.
Next Steps:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for CIMC Enric Holdings you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.