key insights
- The significant ownership interest in Lion Travel Services by retail investors indicates that retail investors collectively have a greater say in management and business strategy.
- 49% of the business is owned by the top 25 shareholders
- Insiders own 22% of Lion Travel Services
A look at the shareholders of Lion Travel Services Co., Ltd. (TWSE:2731) can tell us which group is the most powerful. The group with the biggest pie is individual investors, who own 51% of the stock. In other words, the group will receive the maximum benefit (or maximum loss) from its investment in the company.
Retail investors were the biggest beneficiaries of last week's 11% share price rise, but insiders also took a 22% cut.
The diagram below zooms in on the various ownership groups of Lion Travel Service.
Check out our latest analysis for Lion Travel Services.
What does institutional ownership tell us about Lion Travel Services?
Financial institutions typically measure themselves against a benchmark when reporting to their own investors, so they often see increased enthusiasm for a stock once it's included in a major index. We would expect most companies to have some institutions on their register, especially if they are growing.
We can see that Lion Travel Services has institutional investors. And they own a significant portion of the company's stock. This suggests some credibility among professional investors. But we can't rely on that fact alone because institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. If such a trade goes wrong, multiple parties may compete to sell stock quickly. This risk is higher for companies without a history of growth. You can see Lion Travel Service's historic earnings and revenue below, but keep in mind there's always more to the story.
Hedge funds don't have many shares in Lion Travel Services. According to our data, Wen Jeh Wang is the largest shareholder with his 15% of shares outstanding. Feng Cheng and Japan Securities Finance Co., Ltd. Asset Management Arm hold 6.5% and 3.4% of the shares outstanding, respectively, making them the second and third largest shareholders.
Our research shows that the top 25 shareholders collectively control less than half of the company's shares. This means that the company's shares are widely distributed and there is no dominant shareholder.
While researching 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 is currently no analyst coverage of this stock, so this company is unlikely to be widely held.
Lion Travel Services Insider Ownership
The definition of an insider may vary slightly from country to country, but members of the board of directors are always considered. A company's management runs the business, but the CEO answers to the board, even if he or she is a member of the board.
I generally consider insider ownership to be a good thing. However, in some cases, it may be more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that insiders own a significant stake in Lion Travel Services Ltd. Insiders own a NT$3.1b stake in his NT$14b business. This could suggest that the founders still own a large number of shares. Click here to see if they are buying or selling.
Open to the public
The general public, mostly retail investors, collectively own 51% of Lion Travel Services shares. With this level of ownership, individual investors can collectively play a role in decisions that affect shareholder returns, such as dividend policy and the appointment of directors. They also have the power to vote on acquisitions and mergers that may not improve profitability.
Private company ownership
We can see that Private companies own 8.3% of the shares outstanding. It's hard to draw any conclusions from this fact alone, so it's worth finding out who owns these private companies. Insiders and other parties may have an interest in the stock of a public company through another private company.
Next steps:
It's always worth thinking about the different groups who own shares in a company. However, to understand Lion Travel Services better, you should consider many other factors. For example, risk.Every company has them and we discovered that 4 warning signs for Lion Travel Services (One of which you shouldn't ignore!) you need to know about.
If you want to check out another company with potentially better financials, don't miss this free A list of interesting companies backed by strong financial data.
Note: The numbers in this article are calculated using data from the previous 12 months and refer to the 12-month period ending on the last day of the month in which the financial statements are dated. This may not match the full year annual report figures.
Valuation is complex, but we help make it simple.
Check out our comprehensive analysis, including below, to see if Lion Travel Services is potentially overvalued or undervalued. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
