The big shareholder groups in Xi'an Haitian Antenna Technologies Co., Ltd. (HKG:8227) have power over the company. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.
With a market capitalization of HK$3.1b, Xi'an Haitian Antenna Technologies is a small cap stock, so it might not be well known by many institutional investors. In the chart below, we can see that institutional investors have not yet purchased shares. Let's take a closer look to see what the different types of shareholders can tell us about Xi'an Haitian Antenna Technologies.
What Does The Lack Of Institutional Ownership Tell Us About Xi'an Haitian Antenna Technologies?
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. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. Xi'an Haitian Antenna Technologies might not have the sort of past performance institutions are looking for, or perhaps they simply have not studied the business closely.
Xi'an Haitian Antenna Technologies is not owned by hedge funds. The company's largest shareholder is Xi'an Tian An Investment Company Limited, with ownership of 17%. With 12% and 8.3% of the shares outstanding respectively, Shanghai Gaoxiang Investment Management Company Limited and Xi'an Xiao's Antenna Technologies Co., Ltd. are the second and third largest shareholders.
On further inspection, we found that more than half the company's shares are owned by the top 6 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones.
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. Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Xi'an Haitian Antenna 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. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
Our information suggests that insiders maintain a significant holding in Xi'an Haitian Antenna Technologies Co., Ltd.. Insiders have a HK$315m stake in this HK$3.1b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.
General Public Ownership
The general public holds a 30% stake in Xi'an Haitian Antenna Technologies. 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.
Private Company Ownership
It seems that Private Companies own 55%, of the Xi'an Haitian Antenna Technologies stock. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Public Company Ownership
We can see that public companies hold 5.3% of the Xi'an Haitian Antenna Technologies shares on issue. This may be a strategic interest and the two companies may have related business interests. It could be that they have de-merged. This holding is probably worth investigating further.
While it is well worth considering the different groups that own a company, there are other factors that are even more important. Be aware that Xi'an Haitian Antenna Technologies is showing 5 warning signs in our investment analysis , and 2 of those make us uncomfortable...
Of course this may not be the best stock to buy. So take a peek at this free 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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