What types of shareholders hold the majority of shares in Melco International Development Limited (HKG: 200)?
Every investor in Melco International Development Limited (HKG: 200) should know the most powerful shareholder groups. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Warren Buffett said he enjoys “a business with sustainable competitive advantages, led by skilled people and owner-centered.” So it’s nice to see some insider ownership as it may suggest that the management is owner-driven.
Melco International Development has a market cap of HK $ 20 billion, so we would expect some institutional investors to take notice of the action. Our analysis of company ownership, below, shows that institutional investors bought the company. Let’s dig deeper into each type of owner, to find out more about Melco International Development.
Check out our latest analysis for Melco International Development
What does institutional ownership tell us about Melco International Development?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have certain institutions on the registry, especially if they are growing.
We can see that Melco International Development has institutional investors; and they own a good portion of the company’s shares. 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. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. So it’s worth checking out Melco International Development’s past earnings trajectory (below). Of course, keep in mind that there are other factors to consider as well.
Hedge funds don’t have a lot of shares in Melco International Development. Looking at our data, we can see that the largest shareholder is CEO Yau Lung Ho with 38% of the shares outstanding. For context, the second largest shareholder owns around 21% of the outstanding shares, followed by 13% ownership by the third largest shareholder.
To make our study more interesting, we found that the top 2 shareholders have a controlling stake in the company, which means that they are powerful enough to influence the decisions of the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. Many analysts cover the stock, so it can be interesting to see what they are forecasting as well.
Insider ownership of Melco International Development
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 Melco International Development Limited. It has a market cap of just HK $ 20 billion, and insiders have HK $ 7.6 billion of shares in their own name. It is quite important. Most would say it shows a good degree of alignment with shareholders, especially in a company of this size. You can click here to see if these insiders have bought or sold.
General public property
The general public, with a 15% stake in the company, will not be easily ignored. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
Owned by a private company
It appears that private companies own 21% of the shares of Melco International Development. 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.
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. Please note that Melco International Development displays 2 warning signs in our investment analysis , and 1 of them cannot be ignored …
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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