Key Insights
- Significant insider control over Kangji Medical 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 analyst forecasts alongside ownership research, one can better assess the future performance of a company
Every investor in Kangji Medical Holdings Limited (HKG:9997) should be aware of the most powerful shareholder groups. With 53% stake, individual insiders 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, insiders were the biggest beneficiaries of last week’s 7.9% gain.
Let's delve deeper into each type of owner of Kangji Medical Holdings, beginning with the chart below.
View our latest analysis for Kangji Medical Holdings
What Does The Institutional Ownership Tell Us About Kangji Medical 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 Kangji Medical 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. 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 Kangji Medical Holdings, (below). Of course, keep in mind that there are other factors to consider, too.
Kangji Medical Holdings is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is the CEO Ming Zhong with 34% of shares outstanding. For context, the second largest shareholder holds about 19% of the shares outstanding, followed by an ownership of 18% by the third-largest shareholder. Interestingly, the second-largest shareholder, Yinguang Shentu is also Senior Key Executive, again, pointing towards strong insider ownership amongst the company's top shareholders.
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.
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. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Kangji Medical 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.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
It seems that insiders own more than half the Kangji Medical Holdings Limited stock. This gives them a lot of power. Insiders own HK$4.8b worth of shares in the HK$9.1b company. That's extraordinary! It is good to see this level of investment. You can check here to see if those insiders have been selling any of their shares.
General Public Ownership
With a 23% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Kangji Medical Holdings. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.
Private Equity Ownership
Private equity firms hold a 18% stake in Kangji Medical Holdings. This suggests they can be influential in key policy decisions. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
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. Case in point: We've spotted 1 warning sign for Kangji Medical Holdings you should be aware of.
If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.
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.