Can We See Significant Insider Ownership On The K W Nelson Interior Design and Contracting Group Limited (HKG:8411) Share Register?

If you want to know who really controls K W Nelson Interior Design and Contracting Group Limited (HKG:8411), then you’ll have to look at the makeup of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. I quite like to see at least a little bit of insider ownership. As Charlie Munger said ‘Show me the incentive and I will show you the outcome.’

K W Nelson Interior Design and Contracting Group is a smaller company with a market capitalization of HK$200m, so it may still be flying under the radar of many institutional investors. Taking a look at our data on the ownership groups (below), it’s seems that institutions don’t own shares in the company. We can zoom in on the different ownership groups, to learn more about 8411.

View our latest analysis for K W Nelson Interior Design and Contracting Group

SEHK:8411 Ownership Summary, April 2nd 2019
SEHK:8411 Ownership Summary, April 2nd 2019

What Does The Lack Of Institutional Ownership Tell Us About K W Nelson Interior Design and Contracting Group?

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 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 K W Nelson Interior Design and Contracting Group, for yourself, below.

SEHK:8411 Income Statement, April 2nd 2019
SEHK:8411 Income Statement, April 2nd 2019

K W Nelson Interior Design and Contracting Group is not owned by hedge funds. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of K W Nelson Interior Design and Contracting Group

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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

It seems that insiders own more than half the K W Nelson Interior Design and Contracting Group Limited stock. This gives them a lot of power. So they have a HK$150m stake in this HK$200m 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 holds a 25% stake in 8411. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.

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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.