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The big shareholder groups in Sheen Tai Holdings Group Company Limited (HKG:1335) 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. 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.’
Sheen Tai Holdings Group is a smaller company with a market capitalization of HK$638m, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutional investors have not yet purchased shares. Let’s take a closer look to see what the different types of shareholder can tell us about 1335.
Check out our latest analysis for Sheen Tai Holdings Group
What Does The Lack Of Institutional Ownership Tell Us About Sheen Tai Holdings Group?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it’s unusual to see larger companies without any institutional investors.
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. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Sheen Tai Holdings Group, for yourself, below.
Sheen Tai Holdings Group is not owned by hedge funds. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Sheen Tai Holdings Group
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.
Our information suggests that insiders own more than half of Sheen Tai Holdings Group Company Limited. This gives them effective control of the company. So they have a HK$406m stake in this HK$638m business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.