IntelliCentrics Global Holdings Ltd. (HKG:6819) Top Key Executive Tzung-Liang Lin, the company's largest shareholder sees 10.0%reduction in holdings value

Key Insights

• IntelliCentrics Global Holdings' significant insider ownership suggests inherent interests in company's expansion
• Tzung-Liang Lin owns 63% of the company
• Ownership research, combined with past performance data can help provide a good understanding of opportunities in a stock

If you want to know who really controls IntelliCentrics Global Holdings Ltd. (HKG:6819), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are individual insiders with 72% ownership. 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 as a group endured the highest losses after market cap fell by HK$226m.

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

See our latest analysis for IntelliCentrics Global Holdings

What Does The Lack Of Institutional Ownership Tell Us About IntelliCentrics Global 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 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. IntelliCentrics Global Holdings might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

IntelliCentrics Global Holdings is not owned by hedge funds. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In IntelliCentrics Global Holdings' case, its Top Key Executive, Tzung-Liang Lin, is the largest shareholder, holding 63% of shares outstanding. Michael Sheehan is the second largest shareholder owning 8.9% of common stock, and Kuo-Chang Lin holds about 0.2% of the company stock. Note that two of the top three shareholders are also Chief Executive Officer and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.

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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of IntelliCentrics Global 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. 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 IntelliCentrics Global Holdings Ltd. stock. This gives them a lot of power. Given it has a market cap of HK$2.1b, that means they have HK$1.5b worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public, who are usually individual investors, hold a 28% stake in IntelliCentrics Global Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for IntelliCentrics Global Holdings (of which 1 is significant!) you should know about.

Of course this may not be the best stock to buy. Therefore, you may wish to see our free collection of interesting prospects boasting favorable financials.

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.