Key Insights
- Significant insider control over Ming Yuan Cloud Group Holdings implies vested interests in company growth
- A total of 5 investors have a majority stake in the company with 53% ownership
- Insiders have bought recently
A look at the shareholders of Ming Yuan Cloud Group Holdings Limited (HKG:909) can tell us which group is most powerful. With 49% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
Notably, insiders have bought shares recently. However, with shares price down 16% last week, they must be disappointed.
Let's take a closer look to see what the different types of shareholders can tell us about Ming Yuan Cloud Group Holdings.
See our latest analysis for Ming Yuan Cloud Group Holdings
What Does The Institutional Ownership Tell Us About Ming Yuan Cloud Group 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 Ming Yuan Cloud Group Holdings does have institutional investors; and they hold a good portion of the company's stock. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Ming Yuan Cloud Group Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Ming Yuan Cloud Group Holdings is not owned by hedge funds. From our data, we infer that the largest shareholder is Yu Gao (who also holds the title of Top Key Executive) with 21% 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. Xiaohui Chen is the second largest shareholder owning 15% of common stock, and Haiyang Jiang holds about 8.9% of the company stock. Note that two of the top three shareholders are also Senior Key Executive and Member of the Board of Directors, respectively, once again pointing to significant ownership by company insiders.
After doing some more digging, we found that the top 5 shareholders control more than half of the company's shares which essentially means that there is concentrated ownership amongst the top shareholders, most of whom happen to be insiders!
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 are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.
Insider Ownership Of Ming Yuan Cloud Group Holdings
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. 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.
Our information suggests that insiders maintain a significant holding in Ming Yuan Cloud Group Holdings Limited. Insiders have a HK$3.1b stake in this HK$6.3b 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
With a 37% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Ming Yuan Cloud Group Holdings. 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 4.1%, of the Ming Yuan Cloud Group Holdings stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.
Next Steps:
It's always worth thinking about the different groups who own shares in a company. But to understand Ming Yuan Cloud Group Holdings better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Ming Yuan Cloud Group Holdings .
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.