In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
The big shareholder groups in Xiwang Special Steel Company Limited (HKG:1266) 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 used to be publicly owned tend to have lower insider ownership.
Xiwang Special Steel is a smaller company with a market capitalization of HK$3.3b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about 1266.
View our latest analysis for Xiwang Special Steel
What Does The Institutional Ownership Tell Us About Xiwang Special Steel?
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.
As you can see, institutional investors own 5.5% of Xiwang Special Steel. 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. 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 Xiwang Special Steel, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don’t have many shares in Xiwang Special Steel. There is some analyst coverage of the stock, but it could still become more well known, with time.
Insider Ownership Of Xiwang Special Steel
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that Xiwang Special Steel Company Limited insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven’t picked up on. It appears that the board holds about HK$18m worth of stock. This compares to a market capitalization of HK$3.3b. I generally like to see a board more invested. However it might be worth checking if those insiders have been buying.