FIT Hon Teng Limited (HKG:6088) stock most popular amongst public companies who own 73%, while individual investors hold 17%
Key Insights
- The considerable ownership by public companies in FIT Hon Teng indicates that they collectively have a greater say in management and business strategy
- Hon Hai Precision Industry Co., Ltd. owns 73% of the company
- Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business
If you want to know who really controls FIT Hon Teng Limited (HKG:6088), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 73% to be precise, is public companies. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Meanwhile, individual investors make up 17% of the company’s shareholders.
Let's delve deeper into each type of owner of FIT Hon Teng, beginning with the chart below.
Check out our latest analysis for FIT Hon Teng
What Does The Institutional Ownership Tell Us About FIT Hon Teng?
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.
Less than 5% of FIT Hon Teng is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. When multiple institutional investors want to buy shares, we often see a rising share price. The past revenue trajectory (shown below) can be an indication of future growth, but there are no guarantees.
We note that hedge funds don't have a meaningful investment in FIT Hon Teng. The company's largest shareholder is Hon Hai Precision Industry Co., Ltd., with ownership of 73%. This implies that they have majority interest control of the future of the company. With 5.8% and 0.9% of the shares outstanding respectively, Sung-Ching Lu and The Vanguard Group, Inc. are the second and third largest shareholders. Sung-Ching Lu, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer.
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 are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of FIT Hon Teng
The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
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 some shares in FIT Hon Teng Limited. The insiders have a meaningful stake worth HK$2.1b. Most would see this as a real positive. It is good to see this level of investment by insiders. You can check here to see if those insiders have been buying recently.
General Public Ownership
The general public-- including retail investors -- own 17% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.
Public Company Ownership
We can see that public companies hold 73% of the FIT Hon Teng shares on issue. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for FIT Hon Teng that you should be aware of before investing here.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.