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If you want to know who really controls Tomson Group Limited (HKG:258), 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.’
Tomson Group is a smaller company with a market capitalization of HK$5.20b, so it may still be flying under the radar of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about 258.
View our latest analysis for Tomson Group
What Does The Institutional Ownership Tell Us About Tomson Group?
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.
Tomson Group already has institutions on the share registry. Indeed, they own 11.6% of the company. 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. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Tomson Group’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have a many shares in Tomson Group. As far I can tell there isn’t analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Tomson 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.
Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our most recent data indicates that insiders own the majority of Tomson Group Limited. This means they can collectively make decisions for the company. So they have a HK$3.06b stake in this HK$5.20b business. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.