Key Insights
- The considerable ownership by individual investors in Kindstar Globalgene Technology indicates that they collectively have a greater say in management and business strategy
- 44% of the business is held by the top 14 shareholders
- 16% of Kindstar Globalgene Technology is held by insiders
A look at the shareholders of Kindstar Globalgene Technology, Inc. (HKG:9960) can tell us which group is most powerful. With 56% stake, individual investors possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
As a result, individual investors as a group endured the highest losses last week after market cap fell by HK$133m.
In the chart below, we zoom in on the different ownership groups of Kindstar Globalgene Technology.
See our latest analysis for Kindstar Globalgene Technology
What Does The Institutional Ownership Tell Us About Kindstar Globalgene Technology?
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.
Less than 5% of Kindstar Globalgene Technology is held by institutional investors. This suggests that some funds have the company in their sights, but many have not yet bought shares in it. If the business gets stronger from here, we could see a situation where more institutions are keen to buy. It is not uncommon to see a big share price rise if multiple institutional investors are trying to buy into a stock at the same time. So check out the historic earnings trajectory, below, but keep in mind it's the future that counts most.
Hedge funds don't have many shares in Kindstar Globalgene Technology. Looking at our data, we can see that the largest shareholder is Morningside Venture (I) Investments Limited with 9.6% of shares outstanding. With 8.5% and 7.7% of the shares outstanding respectively, CITIC Private Equity Funds Management Co., Ltd. and Zuie-Chin Huang are the second and third largest shareholders. Zuie-Chin Huang, who is the third-largest shareholder, also happens to hold the title of Member of the Board of Directors. In addition, we found that Shiang Huang, the CEO has 0.5% of the shares allocated to their name.
Our studies suggest that the top 14 shareholders collectively control less than half of the company's shares, meaning that the company's shares are widely disseminated and there is no dominant shareholder.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There is a little analyst coverage of the stock, but not much. So there is room for it to gain more coverage.
Insider Ownership Of Kindstar Globalgene Technology
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.
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.
It seems insiders own a significant proportion of Kindstar Globalgene Technology, Inc.. Insiders own HK$184m worth of shares in the HK$1.1b company. We would say this shows alignment with shareholders, but it is worth noting that the company is still quite small; some insiders may have founded the business. You can click here to see if those insiders have been buying or selling.
General Public Ownership
The general public, mostly comprising of individual investors, collectively holds 56% of Kindstar Globalgene Technology shares. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
Private Equity Ownership
With a stake of 18%, private equity firms could influence the Kindstar Globalgene Technology board. Sometimes we see private equity stick around for the long term, but generally speaking they have a shorter investment horizon and -- as the name suggests -- don't invest in public companies much. After some time they may look to sell and redeploy capital elsewhere.
Private Company Ownership
We can see that Private Companies own 5.1%, of the shares on issue. 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:
It's always worth thinking about the different groups who own shares in a company. But to understand Kindstar Globalgene Technology better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with Kindstar Globalgene Technology .
If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.