Key Insights
- Significant insider control over Flat Glass Group implies vested interests in company growth
- 52% of the business is held by the top 4 shareholders
- Insiders have been buying lately
Every investor in Flat Glass Group Co., Ltd. (HKG:6865) should be aware of the most powerful shareholder groups. We can see that individual insiders own the lion's share in the company with 57% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
Our data shows that insiders recently bought shares in the company and they were rewarded after market cap rose HK$629m last week.
Let's take a closer look to see what the different types of shareholders can tell us about Flat Glass Group.
Check out our latest analysis for Flat Glass Group
What Does The Institutional Ownership Tell Us About Flat Glass Group?
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.
Flat Glass Group already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Flat Glass Group's earnings history below. Of course, the future is what really matters.
We note that hedge funds don't have a meaningful investment in Flat Glass Group. Looking at our data, we can see that the largest shareholder is the CEO Hongliang Ruan with 20% of shares outstanding. In comparison, the second and third largest shareholders hold about 15% and 14% of the stock. Interestingly, the second and third-largest shareholders also happen to be the President and Vice Chairman, respectively. This once again signifies considerable insider ownership amongst the company's top shareholders.
After doing some more digging, we found that the top 4 shareholders control more than half of the company's shares which essentially means that there is concentrated ownership amongst the top shareholders, most of whom happen to be insiders!
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Flat Glass Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO.
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 Flat Glass Group Co., Ltd.. This means they can collectively make decisions for the company. That means insiders have a very meaningful HK$20b stake in this HK$34b business. Most would be pleased to see the board is investing alongside them. You may wish to discover if they have been buying or selling.
General Public Ownership
With a 14% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Flat Glass Group. 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.
Next Steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Flat Glass Group you should be aware of.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
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.