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Every investor in Ever Reach Group (Holdings) Company Limited (HKG:3616) should be aware of the most powerful shareholder groups. Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. 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.
Ever Reach Group (Holdings) is a smaller company with a market capitalization of HK$1.2b, so it may still be flying under the radar of many institutional investors. In the chart below below, we can see that institutional investors have not yet purchased shares. We can zoom in on the different ownership groups, to learn more about 3616.
Check out our latest analysis for Ever Reach Group (Holdings)
What Does The Lack Of Institutional Ownership Tell Us About Ever Reach Group (Holdings)?
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 could be various reasons why no institutions own shares in a company. Typically, small, newly listed companies don't attract much attention from fund managers, because it would not be possible for large fund managers to build a meaningful position in the company. It is also possible that fund managers don't own the stock because they aren't convinced it will perform well. 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 Ever Reach Group (Holdings), for yourself, below.
Hedge funds don't have many shares in Ever Reach Group (Holdings). Our information suggests that there isn't any analyst coverage of the stock, so it is probably little known.
Insider Ownership Of Ever Reach Group (Holdings)
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our most recent data indicates that insiders own the majority of Ever Reach Group (Holdings) Company Limited. This means they can collectively make decisions for the company. Given it has a market cap of HK$1.2b, that means they have HK$936m worth of shares. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.