What Kind Of Shareholder Owns Most SSY Group Limited (HKG:2005) Stock?

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The big shareholder groups in SSY Group Limited (HKG:2005) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in 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.

SSY Group isn't enormous, but it's not particularly small either. It has a market capitalization of HK$18b, which means it would generally expect to see some institutions on the share registry. Taking a look at our data on the ownership groups (below), it's seems that institutions are noticeable on the share registry. We can zoom in on the different ownership groups, to learn more about 2005.

See our latest analysis for SSY Group

SEHK:2005 Ownership Summary, October 25th 2019
SEHK:2005 Ownership Summary, October 25th 2019

What Does The Institutional Ownership Tell Us About SSY Group?

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.

We can see that SSY Group does have institutional investors; and they hold 19% of the stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of SSY Group, (below). Of course, keep in mind that there are other factors to consider, too.

SEHK:2005 Income Statement, October 25th 2019
SEHK:2005 Income Statement, October 25th 2019

Hedge funds don't have many shares in SSY Group. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of SSY Group

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. 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.