What Percentage Of Kidsland International Holdings Limited (HKG:2122) Shares Do Insiders Own?

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The big shareholder groups in Kidsland International Holdings Limited (HKG:2122) 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 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$244m, Kidsland International Holdings is a small cap stock, so it might not be well known by many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own many shares in the company. We can zoom in on the different ownership groups, to learn more about 2122.

Check out our latest analysis for Kidsland International Holdings

SEHK:2122 Ownership Summary, September 19th 2019
SEHK:2122 Ownership Summary, September 19th 2019

What Does The Institutional Ownership Tell Us About Kidsland 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.

Institutions own less than 5% of Kidsland International Holdings. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

SEHK:2122 Income Statement, September 19th 2019
SEHK:2122 Income Statement, September 19th 2019

We note that hedge funds don't have a meaningful investment in Kidsland International Holdings. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Kidsland International Holdings

The definition of company insiders can be subjective, and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

Our information suggests that insiders own more than half of Kidsland International Holdings Limited. This gives them effective control of the company. That means they own HK$150m worth of shares in the HK$244m company. That's quite meaningful. 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.