U.S. Markets closed
  • S&P 500

    3,821.55
    -78.56 (-2.01%)
     
  • Dow 30

    30,946.99
    -491.27 (-1.56%)
     
  • Nasdaq

    11,181.54
    -343.01 (-2.98%)
     
  • Russell 2000

    1,738.84
    -32.90 (-1.86%)
     
  • Crude Oil

    111.70
    +2.13 (+1.94%)
     
  • Gold

    1,821.30
    -3.50 (-0.19%)
     
  • Silver

    20.74
    -0.43 (-2.02%)
     
  • EUR/USD

    1.0527
    -0.0059 (-0.5580%)
     
  • 10-Yr Bond

    3.2060
    +0.0120 (+0.38%)
     
  • Vix

    28.40
    +1.45 (+5.38%)
     
  • GBP/USD

    1.2185
    -0.0085 (-0.6945%)
     
  • USD/JPY

    136.2080
    +0.7620 (+0.5626%)
     
  • BTC-USD

    20,254.19
    -663.08 (-3.17%)
     
  • CMC Crypto 200

    440.24
    -9.83 (-2.18%)
     
  • FTSE 100

    7,323.41
    +65.09 (+0.90%)
     
  • Nikkei 225

    27,049.47
    +178.17 (+0.66%)
     

What Type Of Shareholders Make Up Cheetah Mobile Inc.'s (NYSE:CMCM) Share Registry?

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

If you want to know who really controls Cheetah Mobile Inc. (NYSE:CMCM), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, 'Don’t tell me what you think, tell me what you have in your portfolio.

Cheetah Mobile is a smaller company with a market capitalization of US$237m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have not yet purchased much of the company. Let's delve deeper into each type of owner, to discover more about Cheetah Mobile.

View our latest analysis for Cheetah Mobile

ownership-breakdown
ownership-breakdown

What Does The Institutional Ownership Tell Us About Cheetah Mobile?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Since institutions own only a small portion of Cheetah Mobile, many may not have spent much time considering the stock. But it's clear that some have; and they liked it enough to buy in. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

earnings-and-revenue-growth
earnings-and-revenue-growth

Hedge funds don't have many shares in Cheetah Mobile. Kingsoft Corporation Limited is currently the largest shareholder, with 47% of shares outstanding. For context, the second largest shareholder holds about 16% of the shares outstanding, followed by an ownership of 6.2% by the third-largest shareholder. 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.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Cheetah Mobile

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Shareholders would probably be interested to learn that insiders own shares in Cheetah Mobile Inc.. As individuals, the insiders collectively own US$15m worth of the US$237m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public, with a 26% stake in the company, will not 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.

Public Company Ownership

We can see that public companies hold 64% of the Cheetah Mobile shares on issue. 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. Take risks for example - Cheetah Mobile has 4 warning signs (and 1 which can't be ignored) we think you should know about.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.