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The big shareholder groups in NF Energy Saving Corporation (NASDAQ:BIMI) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes 'a business with enduring competitive advantages that is run by able and owner-oriented people'. So it's nice to see some insider ownership, because it may suggest that management is owner-oriented.
NF Energy Saving is a smaller company with a market capitalization of US$12m, 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 delve deeper into each type of owner, to discover more about BIMI.
Check out our latest analysis for NF Energy Saving
What Does The Lack Of Institutional Ownership Tell Us About NF Energy Saving?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. NF Energy Saving's earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
NF Energy Saving is not owned by hedge funds. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.
Insider Ownership Of NF Energy Saving
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.
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 a reasonable proportion of NF Energy Saving Corporation. Insiders have a US$5.9m stake in this US$12m business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.