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Every investor in Hua Hong Semiconductor Limited (HKG:1347) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. Companies that have been privatized tend to have low insider ownership.
Hua Hong Semiconductor is a pretty big company. It has a market capitalization of HK$24.77b. Normally institutions would own a significant portion of a company this size. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about 1347.
Check out our latest analysis for Hua Hong Semiconductor
What Does The Institutional Ownership Tell Us About Hua Hong Semiconductor?
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 companies to have some institutions on the register, especially if they are growing.
Hua Hong Semiconductor already has institutions on the share registry. Indeed, they own 19.8% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 Hua Hong Semiconductor’s earnings history, below. Of course, the future is what really matters.
We note that hedge funds don’t have a meaningful investment in Hua Hong Semiconductor. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Hua Hong Semiconductor
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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own less than 1% of Hua Hong Semiconductor Limited. Keep in mind that it’s a big company, and the insiders own HK$47.6 worth of shares. The absolute value might be more important than the proportional share. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.