Which type of shareholders owns the most shares of Orient Overseas (International) Limited (HKG: 316)?

A look at the shareholders of Orient Overseas (International) Limited (HKG:316) can tell us which group is more powerful. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. We also tend to see a decline in insider participation in companies that were previously public.

Orient Overseas (International) is quite a large company. It has a market capitalization of HK$127 billion. Normally, institutions own a significant share of a business of this size. Our analysis of societal ownership below shows that institutions own shares in society. We can zoom in on the different ownership groups, to learn more about Orient Overseas (International).

Check out our latest insights for Orient Overseas (International)

SEHK:316 Ownership Distribution February 3, 2022

What does institutional ownership tell us about Orient Overseas (International)?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

We see that Orient Overseas (International) has institutional investors; and they own a good part of the shares of the company. This suggests some credibility with professional investors. But we cannot rely solely on this fact since institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp decline in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking the past earnings trajectory of Orient Overseas (International), (below). Of course, keep in mind that there are other factors to consider as well.

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SEHK: 316 Profit and Revenue Growth Feb 3, 2022

Hedge funds do not have many shares in Orient Overseas (International). The company’s largest shareholder is COSCO SHIPPING Holdings Co., Ltd., with a 71% stake. This implies that they have majority control over the future of the company. In comparison, the second and third shareholders hold approximately 9.1% and 4.8% of the shares.

Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be obtained by studying the feelings of the analyst. A number of analysts cover the stock, so you can look at growth forecasts quite easily.

Orient Overseas Insider Owned (International)

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our information suggests that insiders of Orient Overseas (International) Limited own less than 1% of the company. Being so large, we wouldn’t expect insiders to own a large portion of the shares. Together they own HK$103 million worth of shares. It’s good to see board members owning stock, but it can be helpful to check whether those insiders have bought.

General public property

The general public, including retail investors, owns 13% of the company’s capital and therefore cannot be easily ignored. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Ownership of a public company

Public companies currently own 80% of the shares of Orient Overseas (International). We cannot be sure, but it is quite possible that it is a strategic issue. Businesses can be similar or work together.

Next steps:

While it is worth considering the different groups that own a business, there are other, even more important factors. Example: we have identified 4 warning signs for Orient Overseas (International) you should know, and one of them makes us a little uneasy.

Ultimately the future is the most important. You can access this free analyst forecast report for the company.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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