A look at the shareholders of HG Metal Manufacturing Limited (SGX:BTG) can tell us which group is most powerful. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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.

With a market capitalization of S$27m, HG Metal Manufacturing 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 own shares in the company. Let's delve deeper into each type of owner, to discover more about BTG.

Check out our latest analysis for HG Metal Manufacturing

What Does The Institutional Ownership Tell Us About HG Metal Manufacturing?

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.

HG Metal Manufacturing already has institutions on the share registry. Indeed, they own 5.5% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 HG Metal Manufacturing, (below). Of course, keep in mind that there are other factors to consider, too.

HG Metal Manufacturing 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 HG Metal Manufacturing

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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 maintain a significant holding in HG Metal Manufacturing Limited. Insiders have a S$4.8m stake in this S$27m business. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.