key insights
- Significant control over Geely Automobile Holdings by private investors means the general public has more power to influence management and governance-related decisions
- A total of 10 investors hold a majority stake in the company, with 50% ownership.
- 15% of Geely Automobile Holdings is owned by institutional investors
If you want to know who really controls Geely Automobile Holdings Co., Ltd. (HKG:175), you’ll have to look at the makeup of its share registry. The group with the biggest pie is individual investors, who own 43% of the stock. In other words, this group faces the greatest upside potential (or downside risk).
As a result, its market capitalization fell by HK$5.6 billion last week, with retail investors suffering the biggest losses as a group.
Let’s take a closer look to see what the different types of shareholders can tell us about Geely Automobile Holdings.
Check out our latest analysis for Geely Automobile Holdings.
What does institutional ownership tell us about Geely Automobile Holdings?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they usually consider buying larger companies that are included in the relevant benchmark index.
We can see that Geely Automobile Holdings has institutional investors. And they own a significant portion of the company’s stock. This suggests some credibility among professional investors. But we can’t rely on that fact alone because 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’. 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.
Hedge funds do not hold many shares of Geely Automobile Holdings. The company’s largest shareholder is Zhejiang Geely Holding Co., Ltd., which holds 40% ownership. The second and third largest shareholders are Shu Fu Li and The Vanguard Group, Inc., with an equal stake of 2.2%. Shu Fu Li, the second largest shareholder, also happens to hold the title of Top Key Executive.
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 researching institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. . 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 precise definition of an insider can be subjective, but almost everyone considers board members to be insiders. A company’s management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
Insider ownership is positive when it signals leaders are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative depending on the situation.
We can report that insiders own shares in Geely Automobile Holding Co., Ltd. The company is a very large company and the board members collectively own HK$2.3 billion worth of shares (at current prices). We are sometimes interested in whether they are buying or selling.
Public ownership
The general public, including retail investors, own 43% of the company’s shares, so they can’t be easily ignored. Although this size of ownership is significant, it may not be enough to change company policy if the decision is not aligned with other large shareholders.
Private company ownership
Our data shows that Private companies own 40%, of the company’s shares. 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:
While it is well worth considering the different groups that own a company, there are other factors that are even more important. To do so, you need to know the following: 1 warning sign We found it at Geely Automobile Holding.
If you’re like me, you might want to consider whether this company will grow or shrink. Luckily you can check this free report showing analyst forecasts for its future.
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.
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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.