Institutions profited after Country Garden Services Holdings Company Limited's (HKG:6098) market cap rose HK$1.1b last week but individual investors profited the most

Key Insights

• Country Garden Services Holdings' significant individual investors ownership suggests that the key decisions are influenced by shareholders from the larger public
• The top 17 shareholders own 50% of the company
• Insider ownership in Country Garden Services Holdings is 16%

If you want to know who really controls Country Garden Services Holdings Company Limited (HKG:6098), then you'll have to look at the makeup of its share registry. We can see that individual investors own the lion's share in the company with 47% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Individual investors gained the most after market cap touched HK$17b last week, while institutions who own 37% also benefitted.

In the chart below, we zoom in on the different ownership groups of Country Garden Services Holdings.

View our latest analysis for Country Garden Services Holdings

What Does The Institutional Ownership Tell Us About Country Garden Services Holdings?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Country Garden Services Holdings already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. 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 Country Garden Services Holdings, (below). Of course, keep in mind that there are other factors to consider, too.

We note that hedge funds don't have a meaningful investment in Country Garden Services Holdings. Guoqiang Public Welfare Foundation (Hong Kong) Limited, Endowment Arm is currently the largest shareholder, with 20% of shares outstanding. Huiyan Yang is the second largest shareholder owning 16% of common stock, and UBS Asset Management AG holds about 3.6% of the company stock.

After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Country Garden Services Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

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 insiders own a significant proportion of Country Garden Services Holdings Company Limited. It is very interesting to see that insiders have a meaningful HK$2.8b stake in this HK$17b business. 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 47% stake in Country Garden Services Holdings. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Country Garden Services Holdings , and understanding them should be part of your investment process.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com