The big shareholder groups in The United Laboratories International Holdings Limited (HKG:3933) 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.

United Laboratories International Holdings has a market capitalization of HK$7.1b, so we would expect some institutional investors to have noticed the stock. In the chart below below, we can see that institutional investors have bought into the company. Let's take a closer look to see what the different types of shareholder can tell us about 3933.

See our latest analysis for United Laboratories International Holdings

What Does The Institutional Ownership Tell Us About United Laboratories International Holdings?

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.

United Laboratories International Holdings already has institutions on the share registry. Indeed, they own 6.4% 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see United Laboratories International Holdings's historic earnings and revenue, below, but keep in mind there's always more to the story.

We note that hedge funds don't have a meaningful investment in United Laboratories International Holdings. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of United Laboratories International Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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.

I can report that insiders do own shares in The United Laboratories International Holdings Limited. In their own names, insiders own HK$92m worth of stock in the HK$7.1b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.