Every investor in Phoenix New Media Limited (NYSE: FENG) should know the most powerful groups of shareholders. Large companies usually have institutions as shareholders, and we usually see insiders who own stakes in smaller companies. Companies that were previously publicly owned tend to have lower levels of insider ownership.
Phoenix New Media is not a large company in global comparison. It has a market cap of $ 127 million, which means it wouldn’t attract the attention of many institutional investors. In the graphic below we can see that institutions own shares in the company. We can expand the various groups of owners to learn more about Phoenix New Media.
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NYSE: FENG Ownership Breakdown March 17, 2021
NYSE: FENG Ownership Breakdown March 17, 2021 What does institutional ownership tell us about Phoenix New Media?
Institutional investors typically compare their own returns to the returns of a widely tracked index. As a result, they generally consider buying larger companies that are included in the relevant benchmark index.
Phoenix New Media already has institutions in the share register. Indeed, they have a respectable stake in the company. This can indicate that the company has some level of credibility in the mutual trust. However, it is best not to rely on the purported validation that comes with institutional investors. Sometimes they get it wrong too. It is not uncommon for a large stock price to fall when two large institutional investors are trying to sell a stock at the same time. It is therefore worth checking the earnings trend of Phoenix New Media so far (see below). Of course, keep in mind that there are other factors to consider as well.
NYSE: FENG earnings and revenue growth March 17, 2021
Phoenix New Media is not a hedge fund. Phoenix Media Investment (Holdings) Limited is currently the largest shareholder in the company with 54% of the shares issued. With such a large stake in the owners, we conclude that they have significant control over the future of the company. Fidelity International Ltd and Shuang Liu are the second and third largest shareholders with 4.5% and 2.9% of the issued shares, respectively. Shuang Liu, the third largest shareholder, also happens to be a member of the board of directors.
While studying a company’s institutional ownership can add value to your research, researching analyst recommendations to get a deeper understanding of a stock’s expected performance is also good practice. We don’t currently include analyst coverage on the stock, so the company is unlikely to be widely used.
Phoenix New Media insider owned
The definition of an insider can vary slightly between different countries, but the members of the board of directors always count. Management ultimately replies to the board. However, it’s not uncommon for managers to be board members, especially if they’re founders or CEOs.
Inside ownership is positive when it signals that leadership thinks like the real owners of the company. However, high inside ownership can also give immense power to a small group within the company. This can be negative under certain circumstances.
Our latest data shows that Insiders own some shares in Phoenix New Media Limited. It has a market capitalization of just $ 127 million, and insiders have $ 3.7 million worth of shares in its own name. Some would say that this shows a balance of interests between the shareholders and the board of directors, although I generally prefer larger inside stakes. But it might be worth checking if these insiders have sold.
General public property
The general public has a 31% stake in Phoenix New Media. While this size of ownership is substantial, it may not be enough to change company policy if the decision is not synchronized with other major shareholders.
Ownership of the joint stock company
It seems to us that public corporations own 54% of Phoenix New Media. It’s hard to tell, but this suggests that they have intertwined business interests. This could be a strategic matter so it is worth investigating this area for changes in ownership.
Next Steps:
It is always worth thinking about the different groups that own shares in a company. However, to better understand Phoenix New Media we need to consider many other factors. For example, we identified 3 warning signs for Phoenix New Media you should be aware of that.
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NB: The figures in this article are calculated using data from the last twelve months, which refers to the twelve month period ending on the last date of the month in which the financial statements are dated. This may not match the figures in the annual report for the full year.
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