In This Article:
The big shareholder groups in CITIC Telecom International Holdings Limited (HKG:1883) have power over the company. 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.
CITIC Telecom International Holdings has a market capitalization of HK$10b, so we would expect some institutional investors to have noticed the stock. Taking a look at our data on the ownership groups (below), it's seems 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 1883.
See our latest analysis for CITIC Telecom International Holdings
What Does The Institutional Ownership Tell Us About CITIC Telecom International Holdings?
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.
We can see that CITIC Telecom International Holdings does have institutional investors; and they hold 14% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of CITIC Telecom International Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in CITIC Telecom International Holdings. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of CITIC Telecom International Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of CITIC Telecom International Holdings Limited. However, it's possible that insiders might have an indirect interest through a more complex structure. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around HK$13m worth of shares (at current prices). Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling.