After buying recently, Envision Greenwise Holdings Limited (HKG:1783) insiders must be dismayed to see the company's market cap drop to HK$6.9b

Key Insights

• Insiders appear to have a vested interest in Envision Greenwise Holdings' growth, as seen by their sizeable ownership
• Chun Sing Kwok owns 50% of the company
• Insiders have bought recently

A look at the shareholders of Envision Greenwise Holdings Limited (HKG:1783) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 54% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Notably, insiders have bought shares recently. However, with shares price down 5.4% last week, they must be disappointed.

Let's take a closer look to see what the different types of shareholders can tell us about Envision Greenwise Holdings.

View our latest analysis for Envision Greenwise Holdings

What Does The Lack Of Institutional Ownership Tell Us About Envision Greenwise Holdings?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. 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 Envision Greenwise Holdings, for yourself, below.

We note that hedge funds don't have a meaningful investment in Envision Greenwise Holdings. From our data, we infer that the largest shareholder is Chun Sing Kwok (who also holds the title of Top Key Executive) with 50% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Chi Kin Tang is the second largest shareholder owning 3.2% of common stock, and Zhi Hao Zhan holds about 0.5% of the company stock. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Envision Greenwise Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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.

It seems that insiders own more than half the Envision Greenwise Holdings Limited stock. This gives them a lot of power. That means they own HK$3.7b worth of shares in the HK$6.9b company. That's quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 46% stake in Envision Greenwise Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Envision Greenwise Holdings better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Envision Greenwise Holdings you should be aware of.

Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.