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Alliance International Education Leasing Holdings Limited's (HKG:1563) Market Cap Increased by HK$490m, Insiders Receive a 46% Cut

Simply Wall St ·  10/13/2023 07:40

Key Insights

  • Significant insider control over Alliance International Education Leasing Holdings implies vested interests in company growth
  • A total of 2 investors have a majority stake in the company with 53% ownership
  • Using data from company's past performance alongside ownership research, one can better assess the future performance of a company

Every investor in Alliance International Education Leasing Holdings Limited (HKG:1563) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 46% to be precise, is individual insiders. In other words, the group stands to gain the most (or lose the most) from their investment into the company.

As a result, insiders scored the highest last week as the company hit HK$2.7b market cap following a 23% gain in the stock.

Let's delve deeper into each type of owner of Alliance International Education Leasing Holdings, beginning with the chart below.

Check out our latest analysis for Alliance International Education Leasing Holdings

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SEHK:1563 Ownership Breakdown October 12th 2023

What Does The Institutional Ownership Tell Us About Alliance International Education Leasing Holdings?

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.

Institutions have a very small stake in Alliance International Education Leasing Holdings. That indicates that the company is on the radar of some funds, but it isn't particularly popular with professional investors at the moment. If the company is growing earnings, that may indicate that it is just beginning to catch the attention of these deep-pocketed investors. We sometimes see a rising share price when a few big institutions want to buy a certain stock at the same time. The history of earnings and revenue, which you can see below, could be helpful in considering if more institutional investors will want the stock. Of course, there are plenty of other factors to consider, too.

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SEHK:1563 Earnings and Revenue Growth October 12th 2023

Hedge funds don't have many shares in Alliance International Education Leasing Holdings. Sui Yongqing is currently the largest shareholder, with 45% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 8.0% and 2.1%, of the shares outstanding, respectively. Furthermore, CEO Luqiang Li is the owner of 0.5% of the company's shares.

To make our study more interesting, we found that the top 2 shareholders have a majority ownership in the company, meaning that they are powerful enough to influence the decisions of the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. 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 Alliance International Education Leasing Holdings

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.

I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.

Our most recent data indicates that insiders own a reasonable proportion of Alliance International Education Leasing Holdings Limited. Insiders have a HK$1.2b stake in this HK$2.7b business. It is great to see insiders so invested in the business. It might be worth checking if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 43% stake in the company, and hence can't easily be ignored. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies.

Private Company Ownership

It seems that Private Companies own 8.0%, of the Alliance International Education Leasing Holdings stock. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for Alliance International Education Leasing Holdings you should be aware of, and 1 of them is a bit unpleasant.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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