Key Insights
- The considerable ownership by private companies in Markor International Home Furnishings indicates that they collectively have a greater say in management and business strategy
- 52% of the business is held by the top 4 shareholders
- Institutions own 13% of Markor International Home Furnishings
A look at the shareholders of Markor International Home Furnishings Co., Ltd. (SHSE:600337) 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 companies. Put another way, the group faces the maximum upside potential (or downside risk).
And following last week's 11% decline in share price, private companies suffered the most losses.
In the chart below, we zoom in on the different ownership groups of Markor International Home Furnishings.
What Does The Institutional Ownership Tell Us About Markor International Home Furnishings?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
We can see that Markor International Home Furnishings does have institutional investors; and they hold a good portion of the company's stock. 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 Markor International Home Furnishings' earnings history below. Of course, the future is what really matters.
Markor International Home Furnishings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Markor Investment Group Co.,Ltd. with 33% of shares outstanding. With 12% and 3.6% of the shares outstanding respectively, Ganzhou Development Investment Fund Management Co., Ltd. and Ganzhou Development Investment Holding Group Co., Ltd. are the second and third largest shareholders.
On looking further, we found that 52% of the shares are owned by the top 4 shareholders. In other words, these shareholders have a meaningful say in the decisions of the company.
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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of Markor International Home Furnishings
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 data suggests that insiders own under 1% of Markor International Home Furnishings Co., Ltd. in their own names. However, it's possible that insiders might have an indirect interest through a more complex structure. It has a market capitalization of just CN¥3.2b, and the board has only CN¥17m worth of shares in their own names. Many investors in smaller companies prefer to see the board more heavily invested. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public-- including retail investors -- own 35% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
With a stake of 12%, private equity firms could influence the Markor International Home Furnishings board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
Private Company Ownership
Our data indicates that Private Companies hold 39%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Markor International Home Furnishings better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Markor International Home Furnishings you should know about.
If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.