Key Insights
- The considerable ownership by retail investors in Alliance International Education Leasing Holdings indicates that they collectively have a greater say in management and business strategy
- The top 2 shareholders own 53% of the company
- Insider ownership in Alliance International Education Leasing Holdings is 46%
To get a sense of who is truly in control of Alliance International Education Leasing Holdings Limited (HKG:1563), it is important to understand the ownership structure of the business. We can see that retail investors own the lion's share in the company with 46% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
While insiders, who own 46% shares weren’t spared from last week’s HK$169m market cap drop, retail investors as a group suffered the maximum losses
In the chart below, we zoom in on the different ownership groups of Alliance International Education Leasing Holdings.
Check out our latest analysis for Alliance International Education Leasing Holdings
What Does The Lack Of Institutional Ownership Tell Us About Alliance International Education Leasing Holdings?
Institutional investors often avoid companies that are too small, too illiquid or too risky for their tastes. But it's unusual to see larger companies without any institutional investors.
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. Alternatively, there might be something about the company that has kept institutional investors away. Alliance International Education Leasing Holdings' earnings and revenue track record (below) may not be compelling to institutional investors -- or they simply might not have looked at the business closely.
Alliance International Education Leasing Holdings is not owned by hedge funds. Sui Yongqing is currently the largest shareholder, with 45% of shares outstanding. Pa Investment Funds Spc - Pa Financial Leasing Fund Sp is the second largest shareholder owning 8.0% of common stock, and Dimensional Fund Advisors LP holds about 0.3% of the company stock.
After doing some more digging, we found that the top 2 shareholders collectively control more than half of the company's shares, implying that they have considerable power to influence the company's decisions.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. As far as we can tell there isn't analyst coverage of the company, so it is probably flying under the radar.
Insider Ownership Of Alliance International Education Leasing Holdings
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
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.
It seems insiders own a significant proportion of Alliance International Education Leasing Holdings Limited. It has a market capitalization of just HK$896m, and insiders have HK$409m 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.
General Public Ownership
The general public, who are usually individual investors, hold a 46% stake in Alliance International Education Leasing Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Company Ownership
Our data indicates that Private Companies hold 8.0%, of the company's shares. Private companies may be related parties. Sometimes insiders have an interest in a public company through a holding in a private company, rather than in their own capacity as an individual. While it's hard to draw any broad stroke conclusions, it is worth noting as an area for further research.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Alliance International Education Leasing Holdings better, we need to consider many other factors. Be aware that Alliance International Education Leasing Holdings is showing 2 warning signs in our investment analysis , and 1 of those is significant...
Of course this may not be the best stock to buy. So take a peek at this free free list of interesting companies.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.