The recent 6.2% gain must have brightened Top Key Executive Wing Hong Chan's week, Plover Bay Technologies Limited's (HKG:1523) most bullish insider

Key Insights

• Plover Bay Technologies' significant insider ownership suggests inherent interests in company's expansion
• The largest shareholder of the company is Wing Hong Chan with a 69% stake
• Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business

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If you want to know who really controls Plover Bay Technologies Limited (HKG:1523), then you'll have to look at the makeup of its share registry. With 70% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

Clearly, insiders benefitted the most after the company's market cap rose by HK$430m last week.

Let's delve deeper into each type of owner of Plover Bay Technologies, beginning with the chart below.

View our latest analysis for Plover Bay Technologies

What Does The Institutional Ownership Tell Us About Plover Bay Technologies?

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.

Institutions have a very small stake in Plover Bay Technologies. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.

We note that hedge funds don't have a meaningful investment in Plover Bay Technologies. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Plover Bay Technologies' case, its Top Key Executive, Wing Hong Chan, is the largest shareholder, holding 69% of shares outstanding. With 0.8% and 0.5% of the shares outstanding respectively, Grandeur Peak Global Advisors, LLC and Kit Wai Chau are the second and third largest shareholders. Interestingly, the third-largest shareholder, Kit Wai Chau is also a Member of the Board of Directors, again, indicating 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. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Plover Bay Technologies

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. 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.

Our most recent data indicates that insiders own the majority of Plover Bay Technologies Limited. This means they can collectively make decisions for the company. So they have a HK$5.2b stake in this HK$7.3b business. Most would be pleased to see the board is investing alongside them. You may wish todiscover (for free) if they have been buying or selling.

General Public Ownership

The general public-- including retail investors -- own 28% stake in the company, and hence can't easily be ignored. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Plover Bay Technologies , 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.