What Kind Of Investor Owns Most Of Goodbaby International Holdings Limited (HKG:1086)?

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The big shareholder groups in Goodbaby International Holdings Limited (HKG:1086) have power over the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. Companies that have been privatized tend to have low insider ownership.

Goodbaby International Holdings is a smaller company with a market capitalization of HK$4.8b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about 1086.

See our latest analysis for Goodbaby International Holdings

SEHK:1086 Ownership Summary, March 3rd 2019
SEHK:1086 Ownership Summary, March 3rd 2019

What Does The Institutional Ownership Tell Us About Goodbaby International Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors own 35% of Goodbaby International Holdings. 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 Goodbaby International Holdings’s earnings history, below. Of course, the future is what really matters.

SEHK:1086 Income Statement, March 3rd 2019
SEHK:1086 Income Statement, March 3rd 2019

Goodbaby International Holdings is not owned by hedge funds. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Goodbaby International 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. 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.

I can report that insiders do own shares in Goodbaby International Holdings Limited. As individuals, the insiders collectively own HK$216m worth of the HK$4.8b company. This shows at least some alignment. You can click here to see if those insiders have been buying or selling.