Key Insights
- The considerable ownership by public companies in PICC Property and Casualty indicates that they collectively have a greater say in management and business strategy
- 69% of the company is held by a single shareholder (The People’s Insurance Company (Group) of China Limited)
- Institutional ownership in PICC Property and Casualty is 13%
If you want to know who really controls PICC Property and Casualty Company Limited (HKG:2328), then you’ll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are public companies with 69% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Individual investors, on the other hand, account for 18% of the company’s stockholders.
Let’s take a closer look to see what the different types of shareholders can tell us about PICC Property and Casualty.
See our latest analysis for PICC Property and Casualty
What Does The Institutional Ownership Tell Us About PICC Property and Casualty?
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.
As you can see, institutional investors have a fair amount of stake in PICC Property and Casualty. 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. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see PICC Property and Casualty’s historic earnings and revenue below, but keep in mind there’s always more to the story.
PICC Property and Casualty is not owned by hedge funds. The People’s Insurance Company (Group) of China Limited is currently the largest shareholder, with 69% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. With 1.7% and 1.6% of the shares outstanding respectively, BlackRock, Inc. and GIC Private Limited are the second and third largest shareholders.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of PICC Property and Casualty
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. 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.
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 data cannot confirm that board members are holding shares personally. It is rare to see such a low level of personal ownership, amongst the board (and it is possible that our data might be incomplete). Concerned investors should check here to see if insiders have been selling or buying.
General Public Ownership
The general public, who are usually individual investors, hold a 18% stake in PICC Property and Casualty. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Public Company Ownership
It appears to us that public companies own 69% of PICC Property and Casualty. It’s hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it’s worth watching this space for changes in ownership.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For example, we’ve discovered 1 warning sign for PICC Property and Casualty that you should be aware of before investing here.
Ultimately the future is most important. You can access this free report on analyst forecasts for the company.
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.
Valuation is complex, but we’re helping make it simple.
Find out whether PICC Property and Casualty is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.