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The big shareholder groups in Yadea Group Holdings Ltd (HKG:1585) 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.’
Yadea Group Holdings has a market capitalization of HK$8.3b, so we would expect some institutional investors to have noticed the stock. Taking a look at the our data on the ownership groups (below), it’s seems that institutions don’t own many shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about 1585.
View our latest analysis for Yadea Group Holdings
What Does The Lack Of Institutional Ownership Tell Us About Yadea Group Holdings?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it’s unusual to see larger companies without any institutional investors.
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. Alternatively, there might be something about the company that has kept institutional investors away. Yadea Group Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Yadea Group Holdings is not owned by hedge funds. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Yadea Group Holdings
The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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 insiders own more than half of Yadea Group Holdings Ltd. This gives them effective control of the company. Given it has a market cap of HK$8.3b, that means insiders have a whopping HK$5.6b worth of shares in their own names. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.