Every investor in China Kepei Education Group Limited (HKG: 1890) should know about the most powerful shareholder groups. The group with the most shares in the company, around 67% to be precise, is that of individual insiders. That is, the group is most likely to benefit the most if the stock rises (or to lose the most if there is a decline).
And last week, insiders suffered the biggest losses, as the stock fell 16%.
Let’s take a closer look at each type of owner of China Kepei Education Group, starting with the table below.
Check out our latest analysis for China Kepei Education Group
What does institutional ownership tell us about the China Kepei Education group?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
The institutions have a very small stake in China Kepei Education Group. This indicates that the company is on the radar of certain funds, but it is not particularly popular with professional investors at the moment. If the company increases its profits, it may indicate that it is just starting to catch the attention of those investors with deep pockets. It is not uncommon to see a sharp rise in stock prices if several institutional investors attempt to buy a stock at the same time. So check out the historical earnings path below, but keep in mind that it’s the future that matters most.
We note that the hedge funds do not have a significant investment in China Kepei Education Group. The company’s CEO, Nianqiao Ye, is the largest shareholder with 52% of the shares outstanding. With such a huge turnout, we infer that they have significant control over the future of the business. This is generally considered a good sign when insiders own a significant number of company shares, and in this case, we are happy to see a company insider with such skin in the game. With 15 respectively % and 7.3% of shares outstanding, Xun Ye and Skyline Miracle Limited are the second and third largest shareholders. Interestingly, the second largest shareholder, Xun Ye, is also Senior Key Executive, again, indicating strong insider ownership among the major shareholders of the company.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider Ownership of China Kepei Education Group
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our information suggests that insiders own more than half of China Kepei Education Group Limited. This gives them effective control of the business. Since it has a market cap of HK $ 6.4 billion, that means they have stocks worth HK $ 4.3 billion. Most would say this is a positive, showing strong alignment with shareholders. You can click here to see if these insiders have bought or sold.
General public property
With a 21% stake, the general public, consisting mainly of individual investors, has some influence over China Kepei Education Group. This size of ownership, while considerable, may not be enough to change company policy if the decision is not aligned with other large shareholders.
Owned by a private company
It appears that private companies own 7.3% of the shares of China Kepei Education Group. It might be worth pursuing the matter further. If related parties, such as insiders, have an interest in any of these private companies, this should be disclosed in the annual report. Private companies may also have a strategic interest in the business.
While it is worth considering the different groups that own a business, there are other factors that are even more important. For example, we discovered 2 warning signs for China Kepei Education Group which you should know before investing here.
Ultimately the future is the most important. You can access this free analyst forecast report for the company.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.