A look at the shareholders of GSH Corporation Limited (SGX:BDX) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.’

GSH is not a large company by global standards. It has a market capitalization of S$813.0m, 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 noticeable on the share registry. Let’s take a closer look to see what the different types of shareholder can tell us about BDX.

Check out our latest analysis for GSH

What Does The Institutional Ownership Tell Us About GSH?

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 5.6% of GSH. 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 GSH, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don’t have many shares in GSH. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of GSH

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. It seems that insiders own more than half the GSH Corporation Limited stock. This gives them a lot of power. So they have a S$496.0m stake in this S$813.0m business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.