What Kind Of Investors Own Most Of Excellence Commercial Property & Facilities Management Group Limited (HKG:6989)?

A look at the shareholders of Excellence Commercial Property & Facilities Management Group Limited (HKG:6989) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. 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.

Excellence Commercial Property & Facilities Management Group isn't enormous, but it's not particularly small either. It has a market capitalization of HK$13b, which means it would generally expect to see some institutions on the share registry. In the chart below, we can see that institutional investors have not yet purchased shares. We can zoom in on the different ownership groups, to learn more about Excellence Commercial Property & Facilities Management Group.

Check out our latest analysis for Excellence Commercial Property & Facilities Management Group

What Does The Lack Of Institutional Ownership Tell Us About Excellence Commercial Property & Facilities Management Group?

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

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. Alternatively, there might be something about the company that has kept institutional investors away. Excellence Commercial Property & Facilities Management Group might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.

Excellence Commercial Property & Facilities Management Group is not owned by hedge funds. Li Xiaoping is currently the largest shareholder, with 68% of shares outstanding. This implies that they have majority interest control of the future of the company.

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. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Excellence Commercial Property & Facilities Management Group

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

It seems that insiders own more than half the Excellence Commercial Property & Facilities Management Group Limited stock. This gives them a lot of power. That means insiders have a very meaningful HK$8.7b stake in this HK$13b business. It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.

General Public Ownership

The general public holds a 32% stake in Excellence Commercial Property & Facilities Management Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

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 example, we've discovered 1 warning sign for Excellence Commercial Property & Facilities Management Group that you should be aware of before investing here.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

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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