What type of shareholders make up the share register of Truly International Holdings Limited (HKG: 732)?
The large shareholder groups of Truly International Holdings Limited (HKG: 732) have power over the company. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.
Truly International Holdings has a market cap of HK $ 7.2 billion, so we would expect some institutional investors to take notice of the action. Our analysis of company ownership, below, shows that institutions own shares in the company. Let’s dig deeper into each type of owner to find out more about Truly International Holdings.
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What does institutional ownership tell us about Truly International Holdings?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
We can see that Truly International Holdings has institutional investors; and they own a large portion of the company’s stock. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company without a history of growth. You can see Truly International Holdings’ historical earnings and earnings below, but keep in mind that there is always more to tell.
Truly International Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is CEO Wai Lam with 46% of the shares outstanding. For context, the second largest shareholder owns around 4.7% of the outstanding shares, followed by a 1.3% stake by the third largest shareholder.
To make our study more interesting, we found that the 2 largest shareholders have a controlling stake in the company, which means that they are powerful enough to influence the decisions of the company.
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 is a little analyst coverage of the stock, but not a lot. There is therefore room for it to acquire more cover.
Insider ownership of Truly International Holdings
The definition of an insider may differ slightly from country to country, but board members still count. 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.
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 most recent data indicates that insiders own a reasonable proportion of Truly International Holdings Limited. Insiders have a HK $ 3.3 billion stake in the HK $ 7.2 billion company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.
General public property
With a 46% stake, the general public has some influence over Truly International Holdings. 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.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. For example, we have identified 3 warning signs for Truly International Holdings that you need to be aware of.
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 day 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.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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