What Kind Of Investors Own Most Of EVA Precision Industrial Holdings Limited (HKG:838)?

If you want to know who really controls EVA Precision Industrial Holdings Limited (HKG:838), then you'll have to look at the makeup of its share registry. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. 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.

EVA Precision Industrial Holdings is not a large company by global standards. It has a market capitalization of HK$1.3b, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are noticeable on the share registry. Let's delve deeper into each type of owner, to discover more about EVA Precision Industrial Holdings.

Check out our latest analysis for EVA Precision Industrial Holdings

What Does The Institutional Ownership Tell Us About EVA Precision Industrial Holdings?

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.

EVA Precision Industrial Holdings already has institutions on the share registry. Indeed, they own a respectable stake in 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 EVA Precision Industrial Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

Hedge funds don't have many shares in EVA Precision Industrial Holdings. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In EVA Precision Industrial Holdings' case, its Top Key Executive, Hwo Jie Zhang, is the largest shareholder, holding 41% of shares outstanding. Fidelity International Ltd is the second largest shareholder owning 7.0% of common stock, and Invesco Ltd. holds about 4.9% of the company stock. Furthermore, CEO Yaohua Zhang is the owner of 2.2% of the company's shares.

After doing some more digging, we found that the top 3 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.

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 EVA Precision Industrial Holdings

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.

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 most recent data indicates that insiders own a reasonable proportion of EVA Precision Industrial Holdings Limited. Insiders have a HK$561m stake in this HK$1.3b business. I would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, with a 41% stake in the company, will not easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand EVA Precision Industrial Holdings better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for EVA Precision Industrial Holdings you should be aware of, and 2 of them can't be ignored.

If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, backed by strong financial data.

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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