The big shareholder groups in Wise Talent Information Technology Co Ltd (HKG:6100) have power over the company. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. 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.

With a market capitalization of HK$11.47b, Wise Talent Information Technology is a decent size, so it is probably on the radar of institutional investors. Our analysis of the ownership of the company, below, shows that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about 6100.

Check out our latest analysis for Wise Talent Information Technology

What Does The Institutional Ownership Tell Us About Wise Talent Information Technology?

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.

Wise Talent Information Technology already has institutions on the share registry. Indeed, they own 5.3% 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 Wise Talent Information Technology, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don’t have many shares in Wise Talent Information Technology. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of Wise Talent Information Technology

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems insiders own a significant proportion of Wise Talent Information Technology Co Ltd. It is very interesting to see that insiders have a meaningful HK$2.97b stake in this HK$11.47b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders.