Is the ownership structure of Excellence Commercial Property & Facilities Management Group Limited (HKG: 6989) biased in favor of insiders?
If you want to know who actually controls Excellence Commercial Property & Facilities Management Group Limited (HKG: 6989), then you will need to look at the makeup of their share register. Insiders often own a large portion of younger and smaller firms, while larger firms tend to have institutions as shareholders. Warren Buffett said he enjoys “a business with sustainable competitive advantages that is led by skilled, owner-oriented people.” So it’s nice to see some insider ownership as it can suggest that the management is owner-driven.
With a market cap of HK $ 5.1 billion, Excellence Commercial Property & Facilities Management Group is a small cap stock, so it may not be well known to many institutional investors. In the graph below, we can see that institutional investors have yet to buy a large chunk of the company. Let’s dig deeper into each type of owner to find out more about Excellence Commercial Property & Facilities Management Group.
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What does institutional ownership tell us about Excellence Commercial Property & Facilities Management Group?
Institutional investors generally compare their own returns to the returns of a commonly tracked index. They therefore generally consider buying larger companies that are included in the relevant benchmark.
The institutions have a very low stake in Excellence Commercial Property & Facilities Management Group. This indicates that the company is on the radar of certain funds, but it is not particularly popular with professional investors at the moment. If the business strengthens from here, we could see a situation where more institutions are eager to buy. When several institutional investors want to buy stocks, we often see a rise in the price of the stocks. The past trajectory of income (shown below) may be an indication of future growth, but there is no guarantee.
Hedge funds don’t have a lot of shares in Excellence Commercial Property & Facilities Management Group. Because stocks speak louder than words, we consider it a good sign when insiders have a large stake in a company. In the case of Excellence Commercial Property & Facilities Management Group, its main manager, Xiaoping Li, is the largest shareholder, holding 74% of the outstanding shares. With 1.0% and 0.4% of shares outstanding, respectively, UBS Asset Management and BlackRock, Inc. are the second and third shareholders.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. The title is covered by analysts, but it could become even more famous over time.
Insider Ownership Of Excellence Commercial Property & Facilities Management Group
The definition of business insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders own more than half of Excellence Commercial Property & Facilities Management Group Limited. This gives them effective control of the business. So they have a HK $ 3.8 billion stake in this HK $ 5.1 billion company. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if these insiders have bought or sold.
General public property
The general public, generally individual investors, hold 24% of the capital of Excellence Commercial Property & Facilities Management Group. While this property size may not be enough to influence a policy decision in their favor, they can still have a collective impact on company policies.
I find it very interesting to see who exactly owns a company. But to really understand better, we have to take other information into account as well. Take risks for example – Excellence Commercial Property & Facilities Management Group has 2 warning signs we think you should be aware.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.