Could Icicle Group Holdings Limited’s (HKG:8429) Investor Composition Impacts Your Returns?

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Every investor in Icicle Group Holdings Limited (HKG:8429) should be aware of the most powerful shareholder groups. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Warren Buffett said that he likes ‘a business with enduring competitive advantages that is run by able and owner-oriented people’. So it’s nice to see some insider ownership, because it may suggest that management is owner-oriented.

Icicle Group Holdings is not a large company by global standards. It has a market capitalization of HK$345.6m, which means it wouldn’t have the attention of many institutional investors. Taking a look at the our data on the ownership groups (below), it’s seems that institutions don’t own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about 8429.

Check out our latest analysis for Icicle Group Holdings

SEHK:8429 Ownership Summary September 17th 18
SEHK:8429 Ownership Summary September 17th 18

What Does The Lack Of Institutional Ownership Tell Us About Icicle Group Holdings?

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 Icicle Group Holdings, for yourself, below.

SEHK:8429 Income Statement Export September 17th 18
SEHK:8429 Income Statement Export September 17th 18

Icicle Group Holdings is not owned by hedge funds. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.

Insider Ownership Of Icicle Group Holdings

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. 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.