In This Article:
Key Insights
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The considerable ownership by private equity firms in HUTCHMED (China) indicates that they collectively have a greater say in management and business strategy
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The top 6 shareholders own 50% of the company
A look at the shareholders of HUTCHMED (China) Limited (LON:HCM) can tell us which group is most powerful. The group holding the most number of shares in the company, around 39% to be precise, is private equity firms. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, private equity firms collectively scored the highest last week as the company hit UK£2.1b market cap following a 6.0% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about HUTCHMED (China).
Check out our latest analysis for HUTCHMED (China)
What Does The Institutional Ownership Tell Us About HUTCHMED (China)?
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.
As you can see, institutional investors have a fair amount of stake in HUTCHMED (China). This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. 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 HUTCHMED (China)'s earnings history below. Of course, the future is what really matters.
HUTCHMED (China) is not owned by hedge funds. Hutchison Whampoa (China) Limited is currently the largest shareholder, with 39% of shares outstanding. In comparison, the second and third largest shareholders hold about 3.6% and 2.5% of the stock.
We also observed that the top 6 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of HUTCHMED (China)
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.