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Every investor in E-House (China) Enterprise Holdings Limited (HKG: 2048) should know the most powerful shareholder groups. We can see that SOEs have the lion’s share of the business with a 38% stake. That is, the group is most likely to benefit the most if the stock rises (or to lose the most if there is a decline).
Clearly, state-owned companies have benefited the most after the company’s market capitalization rose to HK $ 910 million last week.
Let’s take a closer look at what different types of shareholders can tell us about E-House (China) Enterprise Holdings.
Check out our latest review for E-House (China) Enterprise Holdings
What does institutional ownership tell us about E-House (China) Enterprise Holdings?
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 some institutions listed, especially if they are growing.
The institutions have a very small stake in E-House (China) Enterprise Holdings. This indicates that the company is on the radar of certain funds, but it is not particularly popular with professional investors at the moment. So if the business itself can improve over time, we may well see more institutional buyers in the future. When several institutional investors want to buy stocks, we often see a rise in the price of the stocks. The past income path (shown below) may be an indication of future growth, but there is no guarantee.
E-House (China) Enterprise Holdings is not owned by hedge funds. Alibaba Group Holding Limited is currently the largest shareholder, with 14% of the shares outstanding. For context, the second largest shareholder owns around 13% of the outstanding shares, followed by a 9.8% stake by the third largest shareholder.
Looking further, we found that 56% of the shares are owned by the top 5 shareholders. In other words, these shareholders have a say in the decisions of the company.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider ownership of E-House (China) Enterprise Holdings
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.
We can report that insiders own shares in E-House (China) Enterprise Holdings Limited. As individuals, the insiders collectively own HK $ 312 million worth of the company HK $ 3.3 billion. It’s good to see some investments from insiders, but it can be worth checking out if those insiders have bought.
General public property
With a 37% stake, the general public, made up mainly of individual investors, has some influence over E-House (China) Enterprise Holdings. While this group cannot necessarily take the lead, it can certainly have a real influence on how the business is run.
Owned by a private company
We can see that the private companies own 13% of the issued shares. It is difficult to draw conclusions from this fact alone, so it is worth considering who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
Public enterprise ownership
State-owned companies currently own 38% of the shares of E-House (China) Enterprise Holdings. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.
Next steps:
While it is worth considering the different groups that own a business, there are other factors that are even more important. To do this, you need to know the 2 warning signs we spotted with E-House (China) Enterprise Holdings.
But finally it’s the future, not the past, which will determine the success of the owners of this business. Therefore, we believe it is advisable to take a look at this free report showing whether analysts are predicting a better 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.
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 documents. Simply Wall St has no position in the mentioned stocks.
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