How Much Of Da Sen Holdings Group Limited (HKG:1580) Do Insiders Own?

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The big shareholder groups in Da Sen Holdings Group Limited (HKG:1580) have power over the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.'

Da Sen Holdings Group is not a large company by global standards. It has a market capitalization of HK$448m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about 1580.

Check out our latest analysis for Da Sen Holdings Group

SEHK:1580 Ownership Summary, May 11th 2019
SEHK:1580 Ownership Summary, May 11th 2019

What Does The Lack Of Institutional Ownership Tell Us About Da Sen Holdings Group?

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

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. Da Sen Holdings Group's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

SEHK:1580 Income Statement, May 11th 2019
SEHK:1580 Income Statement, May 11th 2019

We note that hedge funds don't have a meaningful investment in Da Sen Holdings Group. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Da Sen Holdings Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

Our most recent data indicates that insiders own the majority of Da Sen Holdings Group Limited. This means they can collectively make decisions for the company. So they have a HK$241m stake in this HK$448m 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.