Skyworth Group Limited's (HKG:751) Top Key Executive Wang Wong is the most upbeat insider, and their holdings increased by 37% last week
Key Insights
- Significant insider control over Skyworth Group implies vested interests in company growth
- The largest shareholder of the company is Wang Wong with a 65% stake
- Using data from company's past performance alongside ownership research, one can better assess the future performance of a company
A look at the shareholders of Skyworth Group Limited (HKG:751) can tell us which group is most powerful. 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.
As a result, insiders scored the highest last week as the company hit HK$13b market cap following a 37% gain in the stock.
Let's take a closer look to see what the different types of shareholders can tell us about Skyworth Group.
See our latest analysis for Skyworth Group
What Does The Institutional Ownership Tell Us About Skyworth Group?
Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.
Less than 5% of Skyworth Group is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. So if the company itself can improve over time, we may well see more institutional buyers in the future. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.
We note that hedge funds don't have a meaningful investment in Skyworth Group. Because actions speak louder than words, we consider it a good sign when insiders own a significant stake in a company. In Skyworth Group's case, its Top Key Executive, Wang Wong, is the largest shareholder, holding 65% of shares outstanding. In comparison, the second and third largest shareholders hold about 2.9% and 1.3% of the stock. Interestingly, the second-largest shareholder, Chi Shi is also Chief Executive Officer, again, pointing towards 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 is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Skyworth Group
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 most recent data indicates that insiders own the majority of Skyworth Group Limited. This means they can collectively make decisions for the company. Insiders own HK$9.4b worth of shares in the HK$13b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.
General Public Ownership
The general public, who are usually individual investors, hold a 25% stake in Skyworth Group. 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.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 2 warning signs for Skyworth Group that you should be aware of.
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.