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Every investor in Shanxi Changcheng Microlight Equipment Co. Ltd. (HKG:8286) 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. I quite like to see at least a little bit of insider ownership. As Charlie Munger said 'Show me the incentive and I will show you the outcome.
Shanxi Changcheng Microlight Equipment is not a large company by global standards. It has a market capitalization of HK$90m, which means it wouldn't have the attention of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions are not on the share registry. We can zoom in on the different ownership groups, to learn more about 8286.
See our latest analysis for Shanxi Changcheng Microlight Equipment
What Does The Lack Of Institutional Ownership Tell Us About Shanxi Changcheng Microlight Equipment?
We don't tend to see institutional investors holding stock of companies that are very risky, thinly traded, or very small. Though we do sometimes see large companies without institutions on the register, it's not particularly common.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to fund under management, so the institition does not bother to look closely at the company. 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 Shanxi Changcheng Microlight Equipment, for yourself, below.
Shanxi Changcheng Microlight Equipment is not owned by hedge funds. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Shanxi Changcheng Microlight Equipment
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 information suggests that insiders maintain a significant holding in Shanxi Changcheng Microlight Equipment Co. Ltd.. Insiders own HK$28m worth of shares in the HK$90m company. This may suggest that the founders still own a lot of shares. You can click here to see if they have been buying or selling.