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The big shareholder groups in IDG Energy Investment Limited (HKG:650) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
IDG Energy Investment is not a large company by global standards. It has a market capitalization of HK$6.1b, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about 650.
Check out our latest analysis for IDG Energy Investment
What Does The Institutional Ownership Tell Us About IDG Energy Investment?
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.
IDG Energy Investment already has institutions on the share registry. Indeed, they own 5.4% 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 IDG Energy Investment's earnings history, below. Of course, the future is what really matters.
IDG Energy Investment is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of IDG Energy Investment
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
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.
Our most recent data indicates that insiders own a reasonable proportion of IDG Energy Investment Limited. Insiders own HK$1.2b worth of shares in the HK$6.1b company. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.