If you want to know who actually controls Haichang Ocean Park Holdings Ltd. (HKG:2255), you will then need to examine the composition of its share register. And the group that holds the biggest slice of the pie are individual insiders with 48% ownership. That is, the group will benefit the most if the stock goes up (or lose the most if there is a downturn).
Having bought shares recently, insiders must be happy after the market capitalization hit HK$14 billion last week.
Let’s take a closer look at what different types of shareholders can tell us about Haichang Ocean Park Holdings.
Check out our latest analysis for Haichang Ocean Park Holdings
What does institutional ownership tell us about Haichang Ocean Park 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.
We can see that Haichang Ocean Park Holdings has institutional investors; and they own a good part of the shares of the company. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the so-called validation that accompanies institutional investors. They are also sometimes wrong. 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 Haichang Ocean Park Holdings (below). Of course, keep in mind that there are other factors to consider as well.
We note that hedge funds have no significant investment in Haichang Ocean Park Holdings. Because actions speak louder than words, we consider it a good sign when insiders hold a significant stake in a company. In the case of Haichang Ocean Park Holdings, its top executive, Cheng Qu, is the largest shareholder, holding 48% of the outstanding shares. Meanwhile, the second and third largest shareholders hold 9.8% and 4.7% of the outstanding shares respectively.
A more detailed study of the shareholder register showed us that 2 of the main shareholders hold a considerable stake in the company, via their 57% stake.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for him to gain coverage.
Insider ownership of Haichang Ocean Park Holdings
The definition of an insider may differ slightly from country to country, but board members still matter. 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.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders hold a significant stake in Haichang Ocean Park Holdings Ltd. It has a market capitalization of just HK$14 billion, and insiders hold HK$6.5 billion of shares in their own name. It is quite significant. Most would be delighted to see the board investing alongside them. You may want to access this free chart showing recent insider trades.
General public property
With a 32% stake, the general public, consisting mainly of individual investors, has some influence over Haichang Ocean Park Holdings. Although this group may not necessarily make the decisions, they can certainly have a real influence on the way the business is run.
It is always useful to think about the different groups that own shares in a company. But to better understand Haichang Ocean Park Holdings, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 1 warning sign with Haichang Ocean Park Holdings, and understanding them should be part of your investment process.
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.
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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.