Private companies among Infinity Logistics and Transport Ventures Limited's (HKG:1442) largest stockholders and were hit after last week's 17% price drop

Key Insights

• The considerable ownership by private companies in Infinity Logistics and Transport Ventures indicates that they collectively have a greater say in management and business strategy
• A total of 2 investors have a majority stake in the company with 56% ownership
• Insiders own 31% of Infinity Logistics and Transport Ventures

If you want to know who really controls Infinity Logistics and Transport Ventures Limited (HKG:1442), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 44% to be precise, is private companies. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

While insiders, who own 31% shares weren’t spared from last week’s HK$206m market cap drop, private companies as a group suffered the maximum losses

Let's delve deeper into each type of owner of Infinity Logistics and Transport Ventures, beginning with the chart below.

Check out our latest analysis for Infinity Logistics and Transport Ventures

What Does The Lack Of Institutional Ownership Tell Us About Infinity Logistics and Transport Ventures?

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 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. 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 Infinity Logistics and Transport Ventures, for yourself, below.

We note that hedge funds don't have a meaningful investment in Infinity Logistics and Transport Ventures. Our data shows that 2926 Holdings Limited is the largest shareholder with 41% of shares outstanding. Kong Yew Chan is the second largest shareholder owning 15% of common stock, and Siew Kwan holds about 8.7% of the company stock. Two of the top three shareholders happen to be Chief Executive Officer and Member of the Board of Directors, respectively. That is, insiders feature higher up in the heirarchy of the company's top shareholders.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions 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. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.

Insider Ownership Of Infinity Logistics and Transport Ventures

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. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.

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 a reasonable proportion of Infinity Logistics and Transport Ventures Limited. Insiders have a HK$304m stake in this HK$991m business. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 26% stake in Infinity Logistics and Transport Ventures. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

It seems that Private Companies own 44%, of the Infinity Logistics and Transport Ventures stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand Infinity Logistics and Transport Ventures better, we need to consider many other factors. For instance, we've identified 3 warning signs for Infinity Logistics and Transport Ventures (1 shouldn't be ignored) that you should be aware of.

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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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.