What Percentage Of FDG Electric Vehicles Limited (HKG:729) Shares Do Insiders Own?

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If you want to know who really controls FDG Electric Vehicles Limited (HKG:729), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.'

With a market capitalization of HK$956m, FDG Electric Vehicles is a small cap stock, so it might not be well known by many institutional investors. In the chart below below, we can see that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about 729.

See our latest analysis for FDG Electric Vehicles

SEHK:729 Ownership Summary, June 10th 2019
SEHK:729 Ownership Summary, June 10th 2019

What Does The Institutional Ownership Tell Us About FDG Electric Vehicles?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

As you can see, institutional investors own 11% of FDG Electric Vehicles. 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. 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 FDG Electric Vehicles, (below). Of course, keep in mind that there are other factors to consider, too.

SEHK:729 Income Statement, June 10th 2019
SEHK:729 Income Statement, June 10th 2019

We note that hedge funds don't have a meaningful investment in FDG Electric Vehicles. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of FDG Electric Vehicles

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Shareholders would probably be interested to learn that insiders own shares in FDG Electric Vehicles Limited. In their own names, insiders own HK$84m worth of stock in the HK$956m company. This shows at least some alignment, but I usually like to see larger insider holdings. You can click here to see if those insiders have been buying or selling.