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The big shareholder groups in Tianli Education International Holdings Limited (HKG:1773) have power over the company. 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.’
Tianli Education International Holdings is not a large company by global standards. It has a market capitalization of HK$3.0b, which means it wouldn’t have the attention of many institutional investors. In the chart below below, we can see that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about 1773.
See our latest analysis for Tianli Education International Holdings
What Does The Lack Of Institutional Ownership Tell Us About Tianli Education International Holdings?
Small companies that are not very actively traded often lack institutional investors, but it’s less common to see large companies without them.
There are multiple explanations for why institutions don’t own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. On the other hand, it’s always possible that professional investors are avoiding a company because they don’t think it’s the best place for their money. Tianli Education International Holdings’s earnings and revenue track record (below) may not be compelling to institutional investors — or they simply might not have looked at the business closely.
We note that hedge funds don’t have a meaningful investment in Tianli Education International Holdings. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Tianli Education International Holdings
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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 most recent data indicates that insiders own the majority of Tianli Education International Holdings Limited. This means they can collectively make decisions for the company. Given it has a market cap of HK$3.0b, that means they have HK$1.6b worth of shares. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.