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A look at the shareholders of Chiho Environmental Group Limited (HKG:976) can tell us which group is most powerful. 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.
Chiho Environmental Group is not a large company by global standards. It has a market capitalization of HK$1.7b, which means it wouldn't have the attention of many institutional investors. In the chart below below, we can see that institutions own shares in the company. Let's take a closer look to see what the different types of shareholder can tell us about 976.
See our latest analysis for Chiho Environmental Group
What Does The Institutional Ownership Tell Us About Chiho Environmental Group?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
As you can see, institutional investors own 15% of Chiho Environmental Group. 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 Chiho Environmental Group, (below). Of course, keep in mind that there are other factors to consider, too.
Hedge funds don't have many shares in Chiho Environmental Group. As far I can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Chiho Environmental Group
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.