Individual investors are Telling Telecommunication Holding Co.,Ltd’s (SZSE:000829) biggest owners and were hit after market cap dropped CN¥492m

Key Insights

• Telling Telecommunication HoldingLtd’s significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• A total of 25 investors have a majority stake in the company with 44% ownership
• Using data from company’s past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Telling Telecommunication Holding Co.,Ltd (SZSE:000829) can tell us which group is most powerful. The group holding the most number of shares in the company, around 56% to be precise, is individual investors. Put another way, the group faces the maximum upside potential (or downside risk).

And following last week’s 6.1% decline in share price, individual investors suffered the most losses.

In the chart below, we zoom in on the different ownership groups of Telling Telecommunication HoldingLtd.

View our latest analysis for Telling Telecommunication HoldingLtd

What Does The Institutional Ownership Tell Us About Telling Telecommunication HoldingLtd?

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.

Telling Telecommunication HoldingLtd already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Telling Telecommunication HoldingLtd’s earnings history below. Of course, the future is what really matters.

We note that hedge funds don’t have a meaningful investment in Telling Telecommunication HoldingLtd. Our data shows that Shenzhen Investment Management Corporation is the largest shareholder with 19% of shares outstanding. In comparison, the second and third largest shareholders hold about 9.8% and 4.6% of the stock.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Telling Telecommunication HoldingLtd

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.

Insider ownership is positive when it signals leadership 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 in some circumstances.

Shareholders would probably be interested to learn that insiders own shares in Telling Telecommunication Holding Co.,Ltd. It is a pretty big company, so it is generally a positive to see some potentially meaningful alignment. In this case, they own around CN¥250m worth of shares (at current prices). If you would like to explore the question of insider alignment, you can click here to see if insiders have been buying or selling.

General Public Ownership

The general public — including retail investors — own 56% of Telling Telecommunication HoldingLtd. This size of ownership gives investors from the general public some collective power. They can and probably do influence decisions on executive compensation, dividend policies and proposed business acquisitions.

Private Company Ownership

Our data indicates that Private Companies hold 35%, of the company’s shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it’s hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

Next Steps:

It’s always worth thinking about the different groups who own shares in a company. But to understand Telling Telecommunication HoldingLtd better, we need to consider many other factors. Case in point: We’ve spotted 3 warning signs for Telling Telecommunication HoldingLtd you should be aware of, and 1 of them is concerning.

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

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.