Imperium Technology Group Limited's (HKG:776) most bullish insider, Top Key Executive Ting Kong Cheng must be pleased with the recent 44% gain

Key Insights

• Insiders appear to have a vested interest in Imperium Technology Group's growth, as seen by their sizeable ownership
• The largest shareholder of the company is Ting Kong Cheng with a 69% stake
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

Every investor in Imperium Technology Group Limited (HKG:776) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 70% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders were the biggest beneficiaries of last week’s 44% gain.

In the chart below, we zoom in on the different ownership groups of Imperium Technology Group.

See our latest analysis for Imperium Technology Group

What Does The Lack Of Institutional Ownership Tell Us About Imperium Technology Group?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

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. 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 Imperium Technology Group, for yourself, below.

We note that hedge funds don't have a meaningful investment in Imperium Technology Group. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Imperium Technology Group's case, its Top Key Executive, Ting Kong Cheng, is the largest shareholder, holding 69% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 0.6% and 0.001%, of the shares outstanding, respectively. Interestingly, the second-largest shareholder, Tong Seng Yeung is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. 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 Imperium Technology Group

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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

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 Imperium Technology Group Limited stock. This gives them a lot of power. Given it has a market cap of HK$1.0b, that means they have HK$705m worth of shares. 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-- including retail investors -- own 30% stake in the company, and hence can't easily be ignored. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Imperium Technology Group better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Imperium Technology Group (at least 3 which shouldn't be ignored) , and understanding them should be part of your investment process.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.