The recent HK$108m market cap decrease is likely to have disappointed insiders invested

Key Insights

  • Grand T G Gold Holdings’ significant insider ownership suggests inherent interests in company’s expansion
  • The largest shareholder of the company is Qianzhou Ma with a 70% stake
  • Using data from company’s past performance alongside ownership research, one can better assess the future performance of a company

A look at the shareholders of Grand T G Gold Holdings Limited (HKG:8299) can tell us which group is most powerful. We can see that individual insiders own the lion’s share in the company with 70% ownership. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders as a group endured the highest losses after market cap fell by HK$108m.

In the chart below, we zoom in on the different ownership groups of Grand T G Gold Holdings.

See our latest analysis for Grand T G Gold Holdings

SEHK:8299 Ownership Breakdown December 6th 2023

What Does The Lack Of Institutional Ownership Tell Us About Grand T G Gold 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 are many reasons why a company might not have any institutions on the share registry. It may be hard for institutions to buy large amounts of shares, if liquidity (the amount of shares traded each day) is low. If the company has not needed to raise capital, institutions might lack the opportunity to build a position. Alternatively, there might be something about the company that has kept institutional investors away. Grand T G Gold 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.

SEHK:8299 Earnings and Revenue Growth December 6th 2023

Hedge funds don’t have many shares in Grand T G Gold Holdings. The company’s largest shareholder is Qianzhou Ma, with ownership of 70%. This essentially means that they have extensive influence, if not outright control, over the future of the corporation.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. We’re not picking up on any analyst coverage of the stock at the moment, so the company is unlikely to be widely held.

Insider Ownership Of Grand T G Gold Holdings

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 Grand T G Gold Holdings Limited. This means they can collectively make decisions for the company. That means they own HK$619m worth of shares in the HK$880m company. That’s quite meaningful. Most would argue this is a positive, showing strong alignment with shareholders. You can click here to see if those insiders have been buying or selling.

General Public Ownership

The general public, who are usually individual investors, hold a 30% stake in Grand T G Gold Holdings. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. For example, we’ve discovered 3 warning signs for Grand T G Gold Holdings (2 are significant!) that you should be aware of before investing here.

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.

Valuation is complex, but we’re helping make it simple.

Find out whether Grand T G Gold Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.



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