Alpha Technology Group Limited's (NASDAQ:ATGL) top holders are insiders and they are likely disappointed by the recent 14% drop

Key Insights

• Alpha Technology Group's significant insider ownership suggests inherent interests in company's expansion
• Xiaoqiu Ma owns 59% of the company
• Past performance of a company along with ownership data serve to give a strong idea about prospects for a business

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A look at the shareholders of Alpha Technology Group Limited (NASDAQ:ATGL) can tell us which group is most powerful. With 84% 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.

And last week, insiders endured the biggest losses as the stock fell by 14%.

Let's delve deeper into each type of owner of Alpha Technology Group, beginning with the chart below.

See our latest analysis for Alpha Technology Group

What Does The Lack Of Institutional Ownership Tell Us About Alpha Technology Group?

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. On the other hand, it's always possible that professional investors are avoiding a company because they don't think it's the best place for their money. 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 Alpha Technology Group, for yourself, below.

Hedge funds don't have many shares in Alpha Technology Group. Looking at our data, we can see that the largest shareholder is Xiaoqiu Ma with 59% of shares outstanding. This essentially means that they have extensive influence, if not outright control, over the future of the corporation. Yan Liu is the second largest shareholder owning 15% of common stock, and Chun Ho Tsang holds about 9.7% of the company stock. Chun Ho Tsang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors.

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 Alpha Technology Group

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

Our information suggests that insiders own more than half of Alpha Technology Group Limited. This gives them effective control of the company. That means they own US$328m worth of shares in the US$392m company. That's quite meaningful. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. 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 Alpha Technology Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Alpha Technology Group (of which 2 are potentially serious!) you should know about.

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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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.