Cheetah Mobile Inc. (NYSE:CMCM) stock most popular amongst public companies who own 61%, while individual investors hold 30%
In This Article:
Key Insights
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The considerable ownership by public companies in Cheetah Mobile indicates that they collectively have a greater say in management and business strategy
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61% of the business is held by the top 2 shareholders
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Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock
To get a sense of who is truly in control of Cheetah Mobile Inc. (NYSE:CMCM), it is important to understand the ownership structure of the business. And the group that holds the biggest piece of the pie are public companies with 61% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Individual investors, on the other hand, account for 30% of the company's stockholders.
Let's take a closer look to see what the different types of shareholders can tell us about Cheetah Mobile.
View our latest analysis for Cheetah Mobile
What Does The Lack Of Institutional Ownership Tell Us About Cheetah Mobile?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Cheetah Mobile, for yourself, below.
Cheetah Mobile is not owned by hedge funds. Kingsoft Corporation Limited is currently the company's largest shareholder with 45% of shares outstanding. With 16% and 8.1% of the shares outstanding respectively, Tencent Holdings Limited and Sheng Fu are the second and third largest shareholders. Sheng Fu, who is the third-largest shareholder, also happens to hold the title of Chairman of the Board.
To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.
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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.