A look at the shareholders of Sun Hung Kai Properties Limited (HKG:16) can tell us which group is most powerful. 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.'
With a market capitalization of HK$331b, Sun Hung Kai Properties is rather large. We'd expect to see institutional investors on the register. Companies of this size are usually well known to retail investors, too. In the chart below below, we can see that institutional investors have bought into the company. We can zoom in on the different ownership groups, to learn more about 16.
Check out our latest analysis for Sun Hung Kai Properties
What Does The Institutional Ownership Tell Us About Sun Hung Kai Properties?
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.
Sun Hung Kai Properties already has institutions on the share registry. Indeed, they own 21% of the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone, since institutions make bad investments sometimes, just like everyone does. 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 Sun Hung Kai Properties, (below). Of course, keep in mind that there are other factors to consider, too.
Sun Hung Kai Properties is not owned by hedge funds. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Sun Hung Kai Properties
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. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.
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.
Shareholders would probably be interested to learn that insiders own shares in Sun Hung Kai Properties Limited. It is a very large company, and board members collectively own HK$20b worth of shares (at current prices). It is good to see this level of investment. You can check here to see if those insiders have been buying recently.