If you want to know who actually controls Tongcheng Travel Holdings Limited (HKG:780), you should look at the composition of its share register. The institution with a 33% stake owns the largest stake in the company. In other words, the group stands to gain the most if the share price rises (or suffer the most loss if it falls).
Last week’s HK$2.5 billion market capitalization gain will likely be appreciated by institutional investors, especially after a year of 7.0% losses.
The chart below expands on the various ownership groups of Tongcheng Travel Holdings.
Our analysis 780 may be underestimated.
What does institutional ownership tell us about Tongcheng Travel Holdings?
Many financial institutions measure their performance against indices that approximate local markets. As such, they typically pay more attention to companies included in major indices.
As you can see, institutional investors have a sizeable stake in Tongcheng Travel Holdings. This may indicate that the company has some credibility in the investment community. However, caution should be exercised in relying on the validation that institutional investors assume. They get it wrong sometimes too. When shares are owned by multiple institutions, there is always the risk of getting into a “congested deal”. If such a deal goes wrong, multiple parties may compete to sell the stock fast. This risk is higher for companies with no history of growth. Below are Tongcheng Travel Holdings’ past revenues and earnings, but remember there’s always more to the story.
Hedge funds do not hold many shares in Tongcheng Travel Holdings. Trip.com Group Limited is now the company’s largest shareholder with his 21% of outstanding shares. Meanwhile, the second and third largest shareholders hold 14% of the outstanding shares and his 7.4%, respectively.
To make our research more interesting, we found that the top five shareholders control over half of the company. This means that this group has considerable influence over company decision-making.
Studying institutional ownership of companies can add value to your research, but it’s also good practice to research analyst recommendations to gain a better understanding of the stock’s expected performance. is. There are many analysts covering stocks, so it might be worth taking a look at their forecasts as well.
Insider ownership of Tongcheng Travel Holdings
While the precise definition of an insider can be subjective, we believe that most directors are insiders. Management finally answers to the board. However, it is not uncommon for managers to be members of the board of directors, especially for founders and CEOs.
I usually think insider ownership is a good thing. However, in some cases, it becomes more difficult for other shareholders to hold the board accountable for decision making.
Our latest data shows that insiders own a partial stake in Tongcheng Travel Holdings Limited. Insiders have significant stakes worth HK$411 million. Most people would see this as a true positive. Good to see this level of investment by insiders. You can check if an Insider has made a recent purchase here.
The public, including private investors, owns 23% of the company’s shares, so they can’t simply ignore it. Ownership of this magnitude is substantial, but may not be sufficient to change company policy if decisions are out of sync with other major shareholders.
Private equity ownership
With a 14% ownership interest, the private equity firm is positioned to play a role in shaping corporate strategy focused on value creation. Some may like this because private equity can be an activist to hold management accountable. But sometimes private equity is sold and the company goes public.
public company ownership
The listed company currently owns 28% of the shares of Tongcheng Travel Holdings. It’s hard to say for sure, but this suggests they have intertwined business interests. It’s worth keeping an eye on the space.
It’s well worth considering the different groups that own companies, but there are other factors that are even more important.
i like to dive deeper about how the company has performed in the past.I can access this interactive graph Historical Earnings, Earnings and Cash Flow for Free.
Finally the future is the most important. You can access this freedom A report on the company’s analyst forecasts.
Note: The numbers in this article are calculated using the last 12 months of data. This refers to his 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the annual report figures for the full year.
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