How much of MicroPort Scientific Corporation (HKG: 853) do institutions own?
The large shareholder groups of MicroPort Scientific Corporation (HKG: 853) have power over the company. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. Companies that were previously owned by the state tend to have fewer insiders.
With a market cap of HK $ 90 billion, MicroPort Scientific is pretty big. We would expect to see institutional investors on the register. Companies of this size are also generally well known to retail investors. Our analysis of company ownership, below, shows that institutional investors bought the company. We can zoom in on the different property groups, to find out more about MicroPort Scientific.
Check out our latest review for MicroPort Scientific
What does institutional ownership tell us about MicroPort Scientific?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
As you can see, institutional investors have a significant stake in MicroPort Scientific. This may indicate that the company has a certain degree of credibility in the investment community. However, it’s best to beware of relying on the so-called validation that comes with institutional investors. They too are sometimes wrong. If several institutions change their mind about a stock at the same time, you could see the stock price drop quickly. So it’s worth checking out MicroPort Scientific’s earnings history below. Of course, the future is what really matters.
Hedge funds don’t have a lot of stock in MicroPort Scientific. Our data shows that Otsuka Holdings Co., Ltd. is the largest shareholder with 21% of the shares outstanding. For context, the second shareholder owns around 17% of the outstanding shares, followed by 15% ownership by the third shareholder.
After digging a little deeper, we found that the top 3 shareholders collectively control more than half of the company’s stock, implying that they have considerable power to influence company decisions.
While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand the expected performance of a stock. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider Property of MicroPort Scientific
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of MicroPort Scientific Corporation. But they can have an indirect interest through a business structure that we have not chosen. It’s a very large company, so it would be surprising to see insiders owning a large part of the company. Although their stake is less than 1%, we can see that the board members collectively own HK $ 30 million in shares (at current prices). It’s always good to see at least one insider property, but it may be worth checking out if those insiders have sold.
General public property
The general public has a 20% stake in MicroPort Scientific. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.
With a 17% stake, private equity firms could influence MicroPort Scientific’s board of directors. Sometimes we see private equity sticking around for the long haul, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After a while, they may seek to sell and redeploy the capital elsewhere.
Owned by a private company
Our data indicates that private companies own 32% of the company’s shares. Private companies can be related parties. Sometimes insiders have an interest in a public company through a stake in a private company, rather than in their own capacity as an individual. While it is difficult to draw general conclusions, it should be noted that this is an additional area of research.
Public enterprise ownership
State-owned companies currently own 21% of the shares of MicroPort Scientific. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
I find it very interesting to see who exactly owns a company. But to really get an overview, we have to take other information into account as well. Note that MicroPort Scientific displays 2 warning signs in our investment analysis , you must know…
If you are like me, you might want to ask yourself if this business will grow or shrink. Fortunately, you can check out this free report showing analysts’ forecasts for its future.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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