L.K. Technology Holdings Limited (HKG:558) Top Key Executive Siw Yin Chong's holdings dropped 7.0% in value as a result of the recent pullback

Key Insights

• Insiders appear to have a vested interest in L.K. Technology Holdings' growth, as seen by their sizeable ownership
• 62% of the company is held by a single shareholder (Siw Yin Chong)
• Institutional ownership in L.K. Technology Holdings is 11%

A look at the shareholders of L.K. Technology Holdings Limited (HKG:558) can tell us which group is most powerful. We can see that individual insiders own the lion's share in the company with 62% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

And last week, insiders endured the biggest losses as the stock fell by 7.0%.

In the chart below, we zoom in on the different ownership groups of L.K. Technology Holdings.

View our latest analysis for L.K. Technology Holdings

What Does The Institutional Ownership Tell Us About L.K. Technology Holdings?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in L.K. Technology Holdings. 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. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see L.K. Technology Holdings' historic earnings and revenue below, but keep in mind there's always more to the story.

L.K. Technology Holdings is not owned by hedge funds. From our data, we infer that the largest shareholder is Siw Yin Chong (who also holds the title of Top Key Executive) with 62% 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. Meanwhile, the second and third largest shareholders, hold 4.2% and 2.4%, of the shares outstanding, respectively.

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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of L.K. Technology 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. 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 own more than half of L.K. Technology Holdings Limited. This gives them effective control of the company. Insiders own HK$6.3b worth of shares in the HK$10b company. That's extraordinary! Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if they have been selling down their stake.

General Public Ownership

The general public, who are usually individual investors, hold a 27% stake in L.K. Technology 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 L.K. Technology Holdings better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with L.K. Technology Holdings .

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

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.