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Every investor in Hui Xian Real Estate Investment Trust (HKG:87001) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.
With a market capitalization of CN¥17.96b, Hui Xian Real Estate Investment Trust is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about 87001.
Check out our latest analysis for Hui Xian Real Estate Investment Trust
What Does The Institutional Ownership Tell Us About Hui Xian Real Estate Investment Trust?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.
Hui Xian Real Estate Investment Trust already has institutions on the share registry. Indeed, they own 16.8% of the company. This suggests some credibility amongst professional investors. But we can’t rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Hui Xian Real Estate Investment Trust’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Hui Xian Real Estate Investment Trust. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Hui Xian Real Estate Investment Trust
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.
Our most recent data indicates that insiders own less than 1% of Hui Xian Real Estate Investment Trust. However, it’s possible that insiders might have an indirect interest through a more complex structure. It’s a big company, so even a small proportional interest can create alignment between the board and shareholders. In this case insiders own CN¥6.8m worth of shares. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.