How Much Of Quantum Thinking Limited (HKG:8050) Do Insiders Own?

A look at the shareholders of Quantum Thinking Limited (HKG:8050) 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.

Quantum Thinking is not a large company by global standards. It has a market capitalization of HK$1.1b, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about Quantum Thinking.

See our latest analysis for Quantum Thinking

What Does The Lack Of Institutional Ownership Tell Us About Quantum Thinking?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.

There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Institutional investors may not find the historic growth of the business impressive, or there might be other factors at play. You can see the past revenue performance of Quantum Thinking, for yourself, below.

We note that hedge funds don't have a meaningful investment in Quantum Thinking. Our data shows that Foo Wing Chan is the largest shareholder with 73% of shares outstanding. This implies that they have majority interest control of the future of the company. For context, the second largest shareholder holds about 1.3% of the shares outstanding, followed by an ownership of 0.03% by the third-largest shareholder. Interestingly, the bottom two of the top three shareholders also hold the title of Chief Compliance Officer and Member of the Board of Directors, respectively, suggesting that these insiders have a personal stake in 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. We're not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Quantum Thinking

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.

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 Quantum Thinking Limited. This means they can collectively make decisions for the company. Given it has a market cap of HK$1.1b, that means they have HK$795m worth of shares. 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

With a 26% ownership, the general public have some degree of sway over Quantum Thinking. 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:

It's always worth thinking about the different groups who own shares in a company. But to understand Quantum Thinking better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Quantum Thinking 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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