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A look at the shareholders of China Maple Leaf Educational Systems Limited (HKG:1317) can tell us which group is most powerful. 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.'
China Maple Leaf Educational Systems isn't enormous, but it's not particularly small either. It has a market capitalization of HK$7.2b, which means it would generally expect to see some institutions on the share registry. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let's delve deeper into each type of owner, to discover more about 1317.
See our latest analysis for China Maple Leaf Educational Systems
What Does The Institutional Ownership Tell Us About China Maple Leaf Educational Systems?
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.
China Maple Leaf Educational Systems already has institutions on the share registry. Indeed, they own 14% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. 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 China Maple Leaf Educational Systems's earnings history, below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in China Maple Leaf Educational Systems. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of China Maple Leaf Educational Systems
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.
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.
It seems that insiders own more than half the China Maple Leaf Educational Systems Limited stock. This gives them a lot of power. So they have a HK$3.7b stake in this HK$7.2b business. 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.