A look at the shareholders of Guangdong – Hong Kong Greater Bay Area Holdings Limited (HKG:1396) can tell us which group is more powerful. Insiders often own a large portion of younger, smaller companies, while larger companies tend to have institutions as shareholders. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.
Guangdong – Hong Kong Greater Bay Area Holdings is a small company with a market capitalization of HK$1.1 billion, so it may still fly under the radar of many institutional investors. Our analysis of company ownership, below, shows that the institutions are not listed on the share register. Let’s dig deeper into each type of owner to learn more about Guangdong – Hong Kong Greater Bay Area Holdings.
See our latest analysis for Guangdong – Hong Kong Greater Bay Area Holdings
What does the lack of institutional ownership tell us about Guangdong – Hong Kong Greater Bay Area Holdings?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their liking. But it’s unusual to see large companies without institutional investors.
There are many reasons why a company may not have institutions listed in the share register. It can be difficult for institutions to buy large amounts of shares if liquidity (the amount of shares traded each day) is low. If the company did not need to raise capital, institutions might not have the opportunity to build a position. It’s also possible that the fund managers don’t own the stock because they aren’t convinced it will perform well. Institutional investors may not find the company’s historic growth impressive, or there may be other factors at play. You can see Guangdong – Hong Kong Greater Bay Area Holdings’ past revenue performance for yourself. , below.
Guangdong – Hong Kong Greater Bay Area Holdings is not owned by hedge funds. The company’s largest shareholder is China Guangdong Hong Kong Greater Bay Area Holdings Limited with a 59% stake. This implies that they have majority control over the future of the company. In comparison, the second and third shareholders hold approximately 9.9% and 7.2% of the shares.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to find out which way the wind is blowing. As far as we can tell, there’s no analyst coverage of the company, so it’s probably flying under the radar.
Guangdong Insider Ownership – Hong Kong Greater Bay Area Holdings
The definition of an insider may differ slightly from country to country, but board members still matter. Management is ultimately responsible to the board of directors. However, it is not uncommon for managers to be members of the management board, especially if they are founders or CEOs.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
Our most recent data indicates that insiders hold a reasonable proportion of Guangdong – Hong Kong Greater Bay Area Holdings Limited. Insiders hold HK$189 million worth of shares in the HK$1.1 billion company. This may suggest that the founders still own a lot of shares. You can click here to see if they bought or sold.
General public property
With a 24% stake, the general public, consisting mainly of individual investors, has some influence over Guangdong – Hong Kong Greater Bay Area Holdings. While this size of ownership may not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.
Private Company Ownership
We can see that private companies hold 59% of the shares issued. It’s hard to draw conclusions from this fact alone, so it’s worth investigating who owns these private companies. Sometimes insiders or other related parties have an interest in shares of a public company through a separate private company.
I find it very interesting to see who exactly owns a company. But to really get insight, we also need to consider other information. Consider the risks, for example. Every business has them, and we’ve spotted 2 warning signs for Guangdong – Hong Kong Greater Bay Area Holdings you should know.
Sure this may not be the best stock to buy. So take a look at this free free list of interesting companies.
NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month in which the financial statements are dated. This may not be consistent with the annual report figures for the full year.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.