Private companies among Three's Company Media Group Co., Ltd.'s (SHSE:605168) largest stockholders and were hit after last week's 15% price drop

Simply Wall St · 10/16 01:01

Key Insights

  • The considerable ownership by private companies in Three's Company Media Group indicates that they collectively have a greater say in management and business strategy
  • 56% of the business is held by the top 3 shareholders
  • 18% of Three's Company Media Group is held by insiders

Every investor in Three's Company Media Group Co., Ltd. (SHSE:605168) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 39% to be precise, is private companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As market cap fell to CN¥6.2b last week, private 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 Three's Company Media Group.

Check out our latest analysis for Three's Company Media Group

ownership-breakdown
SHSE:605168 Ownership Breakdown October 16th 2024

What Does The Institutional Ownership Tell Us About Three's Company Media Group?

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.

Three's Company Media Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Three's Company Media Group, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SHSE:605168 Earnings and Revenue Growth October 16th 2024

Hedge funds don't have many shares in Three's Company Media Group. Xian Duoduo Investment Management Co., Ltd is currently the largest shareholder, with 26% of shares outstanding. In comparison, the second and third largest shareholders hold about 17% and 12% of the stock. Jundong Qian, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

While studying 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 is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Three's Company Media Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Three's Company Media Group Co., Ltd.. Insiders have a CN¥1.1b stake in this CN¥6.2b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 32% stake in Three's Company Media Group. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

We can see that Private Companies own 39%, of the shares on issue. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Three's Company Media Group better, we need to consider many other factors. For example, we've discovered 3 warning signs for Three's Company Media Group that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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.