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If you want to know who really controls Huayi Tencent Entertainment Company Limited (HKG:419), then you’ll have to look at the makeup of its share registry. Institutions often own shares in more established companies, while it’s not unusual to see insiders own a fair bit of smaller companies. I generally like to see some degree of insider ownership, even if only a little. As Nassim Nicholas Taleb said, ‘Don’t tell me what you think, tell me what you have in your portfolio.’
Huayi Tencent Entertainment is a smaller company with a market capitalization of HK$2.6b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about 419.
See our latest analysis for Huayi Tencent Entertainment
What Does The Institutional Ownership Tell Us About Huayi Tencent Entertainment?
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.
Huayi Tencent Entertainment already has institutions on the share registry. Indeed, they own 7.1% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Huayi Tencent Entertainment, (below). Of course, keep in mind that there are other factors to consider, too.
We note that hedge funds don’t have a meaningful investment in Huayi Tencent Entertainment. Our information suggests that there isn’t any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Huayi Tencent Entertainment
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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own a reasonable proportion of Huayi Tencent Entertainment Company Limited. It has a market capitalization of just HK$2.6b, and insiders have HK$402m worth of shares in their own names. 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.