Do insiders own a lot of shares in Landsea Green Life Service Company Limited (HKG: 1965)?

If you want to know who actually controls Landsea Green Life Service Company Limited (HKG: 1965), you will need to look at the composition of its share register. Institutions often own shares in larger companies, and we expect to see insiders owning a noticeable percentage of smaller ones. Warren Buffett said he likes “a business with enduring competitive advantages that is led by capable, owner-oriented people.” So it’s nice to see some insider ownership, as it may suggest management is owner-driven.

Landsea Green Life Service is not a large company by global standards. It has a market cap of HK$994 million, which means it wouldn’t get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutional investors have yet to buy much of the company. We can zoom in on the different ownership groups, to learn more about Landsea Green Life Service.

See our latest analysis for Landsea Green Life Service

SEHK: 1965 Ownership Breakdown August 11, 2022

What does institutional ownership tell us about the Landsea Green Life service?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it is included in a major index. We would expect most companies to have some institutions listed, especially if they are growing.

Institutions have a very small stake in Landsea Green Life Service. This indicates that the company is on the radar of some funds, but it is not particularly popular with professional investors at the moment. If the company is increasing its earnings, it may indicate that it is just beginning to attract the attention of those deep-pocketed investors. It is not uncommon to see a sharp rise in the stock price if several institutional investors attempt to buy a stock at the same time. So check out the historical earnings trajectory below, but keep in mind that it’s the future that matters most.

earnings-and-revenue-growth
SEHK: 1965 Earnings and Revenue Growth August 11, 2022

Hedge funds don’t have a lot of shares in Landsea Green Life Service. Looking at our data, we can see that the largest shareholder is Ming Tian with 39% of the outstanding shares. Meanwhile, the second and third largest shareholders hold 17% and 11% of the outstanding shares respectively.

To make our study more interesting, we found that the top 2 shareholders hold a majority stake in the company, which means they are powerful enough to influence company decisions.

While studying the institutional ownership of a company can add value to your research, it is also recommended that you research analyst recommendations to better understand a stock’s expected performance. We don’t see any analyst coverage of the stock at this time, so the company is unlikely to be widely held.

Landsea Green Life Service Insider Ownership

The definition of company insiders can be subjective and varies from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. The management of the company answers to the board of directors and the latter must represent the interests of the shareholders. In particular, sometimes the senior executives themselves sit on the board of directors.

Most view insider ownership as a positive because it can indicate that the board is well aligned with other shareholders. However, there are times when too much power is concentrated within this group.

Our most recent data indicates that insiders own the majority of Landsea Green Life Service Company Limited. This means they can collectively make decisions for the business. So they have a HK$569 million stake in this HK$994 million business. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if these insiders have been buying or selling.

General public property

With a 14% stake, the general public, consisting mainly of individual investors, has some influence over Landsea Green Life Service. While that size of ownership might not be enough to sway a policy decision in their favor, they can still have a collective impact on company policies.

Private Company Ownership

Private companies appear to own 7.0% of the shares of Landsea Green Life Service. It might be worth exploring this further. If related parties, such as insiders, have an interest in any of these private companies, this must be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Ownership of a public company

It appears to us that public companies hold 17% of Landsea Green Life Service. It’s hard to say for sure, but it suggests they have intertwined business interests. This could be a strategic stake, so it’s worth monitoring this space for ownership changes.

Next steps:

It is always useful to think about the different groups that own shares in a company. But to better understand Landsea Green Life Service, we need to consider many other factors.

Many find it useful to take an in-depth look at a company’s performance in the past. You can access this detailed graph past profits, revenue and cash flow.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

NB: The figures in this article are calculated using trailing twelve month data, which refers to the 12 month period ending on the last day of the month the financial statements are dated. This may not be consistent with the annual report figures for the full year.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

Veronica J. Snell