Do the institutions own shares of Arta TechFin Corporation Limited (HKG: 279)?

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The large shareholder groups of Arta TechFin Corporation Limited (HKG: 279) have power over the company. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. I generally like to see some degree of insider ownership, even if it’s just a little. As Nassim Nicholas Taleb said, “Don’t tell me what you think, tell me what you have in your wallet.

Arta TechFin is not a large company by global standards. It has a market cap of HK $ 5.4 billion, which means it wouldn’t get the attention of many institutional investors. Our analysis of company ownership, below, shows that institutions do not own shares in the company. Let’s dig deeper into each type of owner, to find out more about Arta TechFin.

See our latest review for Arta TechFin

SEHK: 279 Ownership Breakdown November 8, 2021

What does the lack of institutional ownership tell us about Arta TechFin?

Institutional investors often avoid companies that are too small, too illiquid or too risky for their liking. But it is unusual to see large companies without any institutional investor.

There are several explanations why institutions do not hold shares. The most common is that the company is too small in relation to the funds under management, so that the institution does not bother to take a close look at the company. It is also possible that the fund managers do not own the stock because they are not convinced that it will perform well. Institutional investors may not find the company’s historical growth impressive, or there may be other factors at play. You can see for yourself the past income performance of Arta TechFin below.

profit and revenue growth
SEHK: 279 Profit and Revenue Growth November 8, 2021

We note that the hedge funds do not have a significant investment in Arta TechFin. Our data shows that Chi-Kong Cheng is the largest shareholder with 75% of the shares outstanding. Essentially, this means that they have considerable influence, if not absolute control, over the future of the business. For context, the second largest shareholder owns around 6.9% of the outstanding shares, followed by 1.6% ownership by the third largest shareholder.

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. Our information suggests there is no analyst coverage of the stock, so it is likely little known.

Insider property of Arta TechFin

The definition of company insiders can be subjective and vary from jurisdiction to jurisdiction. Our data reflects individual insiders, capturing at least board members. 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.

Insider ownership is positive when it indicates that executives think like the real owners of the company. However, strong insider ownership can also give immense power to a small group within the company. This can be negative in certain circumstances.

It appears that insiders own more than half of the shares of Arta TechFin Corporation Limited. It gives them a lot of power. Considering that it has a market cap of HK $ 5.4 billion, that means they have stocks worth HK $ 4.1 billion. Most would be happy to see the board invest alongside them. You may wish to find out (free) whether they bought or sold.

General public property

The general public holds 17% of Arta TechFin’s capital. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in line with other large shareholders.

Public enterprise ownership

It can be seen that public companies hold 6.9% of Arta TechFin shares on issue. We cannot be sure, but it is quite possible that it is a strategic issue. Companies can be similar or work together.

Next steps:

While it is worth considering the different groups that own a business, there are other factors that are even more important. Like risks, for example. Every business has them, and we’ve spotted 4 warning signs for Arta TechFin (3 of which should not be ignored!) that you should know.

Sure this might not be the best stock to buy. Therefore, you may want to see our free set of interesting prospects benefiting from a favorable financial situation.

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.

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 shares 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 the mentioned stocks.

Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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