How Much Of Green Future Food Hydrocolloid Marine Science Company Limited (HKG:1084) Do Insiders Own?

If you want to know who really controls Green Future Food Hydrocolloid Marine Science Company Limited (HKG:1084), then you'll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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.

Green Future Food Hydrocolloid Marine Science is a smaller company with a market capitalization of HK$849m, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions don't own shares in the company. We can zoom in on the different ownership groups, to learn more about Green Future Food Hydrocolloid Marine Science.

See our latest analysis for Green Future Food Hydrocolloid Marine Science

What Does The Lack Of Institutional Ownership Tell Us About Green Future Food Hydrocolloid Marine Science?

Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.

There could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. Green Future Food Hydrocolloid Marine Science might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Hedge funds don't have many shares in Green Future Food Hydrocolloid Marine Science. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Green Future Food Hydrocolloid Marine Science's case, its Senior Key Executive, Shui Yip Chan, is the largest shareholder, holding 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 20% and 11% of the stock. Interestingly, the second and third-largest shareholders also happen to be the Chief Executive Officer and Member of the Board of Directors, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.

To make our study more interesting, we found that the top 3 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

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. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Green Future Food Hydrocolloid Marine Science

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

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.

Our most recent data indicates that insiders own the majority of Green Future Food Hydrocolloid Marine Science Company Limited. This means they can collectively make decisions for the company. So they have a HK$612m stake in this HK$849m business. 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

With a 28% ownership, the general public have some degree of sway over Green Future Food Hydrocolloid Marine Science. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For instance, we've identified 3 warning signs for Green Future Food Hydrocolloid Marine Science (1 can't be ignored) that you should be aware of.

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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