Envision Greenwise Holdings Limited's (HKG:1783) Top Key Executive Chun Sing Kwok is the most upbeat insider, and their holdings increased by 13% last week

Key Insights

• Significant insider control over Envision Greenwise Holdings implies vested interests in company growth
• Chun Sing Kwok owns 51% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Envision Greenwise Holdings Limited (HKG:1783) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 58% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

As a result, insiders scored the highest last week as the company hit HK$3.0b market cap following a 13% gain in the stock.

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

Check out our latest analysis for Envision Greenwise Holdings

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

We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Envision Greenwise Holdings' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.

Envision Greenwise Holdings is not owned by hedge funds. From our data, we infer that the largest shareholder is Chun Sing Kwok (who also holds the title of Top Key Executive) with 51% 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. With 3.8% and 3.7% of the shares outstanding respectively, Man Keung Li and Shiny Golden Limited are the second and third largest shareholders. Furthermore, CEO Zhi Hao Zhan is the owner of 0.6% of the company's shares.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Envision Greenwise Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. 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.

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 that insiders own more than half the Envision Greenwise Holdings Limited stock. This gives them a lot of power. So they have a HK$1.7b stake in this HK$3.0b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 38% stake in the company, and hence can't easily be ignored. 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.

Private Company Ownership

Our data indicates that Private Companies hold 3.7%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.

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 2 warning signs for Envision Greenwise Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.

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.

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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.