Dah Sing Financial Holdings Limited's (HKG:440): Top Key Executive Shou-Yeh Wong Is the Most Bullish Insider, and Their Stock Value Gained 8.0% Last Week

Simply Wall St ·  Feb 22 17:31

Key Insights

  • Insiders appear to have a vested interest in Dah Sing Financial Holdings' growth, as seen by their sizeable ownership
  • 53% of the business is held by the top 2 shareholders
  • Institutional ownership in Dah Sing Financial Holdings is 25%

If you want to know who really controls Dah Sing Financial Holdings Limited (HKG:440), then you'll have to look at the makeup of its share registry. The group holding the most number of shares in the company, around 44% to be precise, is individual insiders. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Clearly, insiders benefitted the most after the company's market cap rose by HK$396m last week.

In the chart below, we zoom in on the different ownership groups of Dah Sing Financial Holdings.

SEHK:440 Ownership Breakdown February 22nd 2024

What Does The Institutional Ownership Tell Us About Dah Sing Financial Holdings?

Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.

We can see that Dah Sing Financial Holdings does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Dah Sing Financial Holdings' earnings history below. Of course, the future is what really matters.

SEHK:440 Earnings and Revenue Growth February 22nd 2024

Dah Sing Financial Holdings is not owned by hedge funds. From our data, we infer that the largest shareholder is Shou-Yeh Wong (who also holds the title of Top Key Executive) with 43% of shares outstanding. Its usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider play the role of a key stakeholder. Norinchukin Zenkyoren Asset Management Co., Ltd. is the second largest shareholder owning 9.9% of common stock, and abrdn plc holds about 5.6% of the company stock.

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. There is some analyst coverage of the stock, but it could still become more well known, with time.

Insider Ownership Of Dah Sing Financial Holdings

The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances.

Our most recent data indicates that insiders own a reasonable proportion of Dah Sing Financial Holdings Limited. It has a market capitalization of just HK$5.3b, and insiders have HK$2.4b worth of shares in their own names. 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 31% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Dah Sing Financial Holdings .

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

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.

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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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