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Every investor in Precision Tsugami (China) Corporation Limited (HKG:1651) should be aware of the most powerful shareholder groups. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. We also tend to see lower insider ownership in companies that were previously publicly owned.
With a market capitalization of HK$2.6b, Precision Tsugami (China) is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let’s delve deeper into each type of owner, to discover more about 1651.
See our latest analysis for Precision Tsugami (China)
What Does The Institutional Ownership Tell Us About Precision Tsugami (China)?
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.
We can see that Precision Tsugami (China) does have institutional investors; and they hold 10% of the stock. 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 Precision Tsugami (China)’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Precision Tsugami (China). There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Precision Tsugami (China)
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that Precision Tsugami (China) Corporation Limited insiders own under 1% of the company. It has a market capitalization of just HK$2.6b, and the board has only HK$1m worth of shares in their own names. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.