key insights
- Significant ownership by retail investors in Geely Automobile Holdings indicates that retail investors collectively have a greater say in management and business strategy
- A total of 10 investors hold a majority stake in the company, with 50% ownership.
- Geely Automobile Holdings’ corporate ownership is 13%
A look at the shareholders of Geely Automobile Holding Co., Ltd. (HKG:175) can tell us which group is the most powerful. We can see that retail investors hold the majority, holding 44% of the company’s shares. That is, if the stock price rises, the group will gain the most (or if the stock price falls, it will suffer the maximum loss).
As a result, the company reached a market capitalization of HK$82 billion last week after a 9.5% share price rise, hitting a general high for retail investors.
Let’s delve deeper into each type of owner at Geely Automobile Holdings, starting from the chart below.
Check out our latest analysis for Geely Automobile Holdings.
What does institutional ownership tell us about Geely Automobile Holdings?
Many institutions measure performance based on indicators that approximate local markets. So they usually pay more attention to companies that are included in major indices.
As you can see, institutional investors own a significant amount of Geely Automobile Holdings stock. This implies the analysts working for these institutions have considered the stock and they like it. But just like anyone else, they can be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Geely Automobile Holdings’ historical earnings and revenue below, but keep in mind there’s always more to the story.
We note that hedge funds don’t have a meaningful investment in Geely Automobile Holdings. Looking at our data, we can see that the largest shareholder is Zhejiang Geely Holding Co., Ltd. with 40% of shares outstanding. The second and third largest shareholders are The Vanguard Group, Inc. and Shu Fu Li, with an equal ownership of 2.2%. Shu Fu Li, the third largest shareholder, also happens to hold the title of Chairman of the Board.
Upon further investigation, we found that the 10 top shareholders control around 50% of the registry. This means that in addition to the large shareholders, there are a few small shareholders, so that their interests are balanced to some extent.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are predicting.
Insider ownership in Geely Automobile Holdings
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. Management ultimately answers to the board. However, it is not uncommon for managers to be members of the board of directors. This is especially true if the manager is the founder or CEO.
Most consider insider ownership a positive, because it can indicate the board is well aligned with other shareholders. However, in some cases, too much power may be concentrated within this group.
Shareholders would likely be interested to know that insiders own shares in Geely Automobile Holding Co., Ltd. The company is a very large company and the board members collectively own HK$2.1 billion worth of shares (at current prices). We are sometimes interested in whether they are buying or selling.
Public ownership
General investors are general investors and hold 44% of the shares of Geely Automobile Holdings. While this group doesn’t necessarily call the shots, it can certainly have a big influence on how the company is run.
Private company ownership
It appears that 40% of Geely Automobile Holdings’ shares are held by a private company. It might be worth looking into this further. If insiders or other parties have an interest in these private companies, this must be disclosed in the annual report. Private companies may also have 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 better understand Geely Automobile Holdings, you need to consider many other factors. Please note that Geely Automobile Holding is displayed. 1 warning sign in investment analysis you should know…
after all the future is most important.You can access this free A report on analyst forecasts for a company.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
Valuation is complex, but we help make it simple.
Check out our comprehensive analysis, including below, to see if Geely Automobile Holdings is potentially overvalued or undervalued. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
See free analysis
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.